4.17 Upward vs downward sloping Yield Curve(Figure 4.2 and 4.3, page 93) For an upward sloping yield curve FWd rate> Zero rate> par yield (See Figure 4.2 on page 94) For a downward sloping yield curve Par yield> zero rate> fwd rate (See Figure 4.3 on page 94) Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University4.17 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Upward vs Downward Sloping Yield Curve (Figure 4.2 and 4.3, page 93) • For an upward sloping yield curve: Fwd Rate > Zero Rate > Par Yield (See Figure 4.2 on page 94) • For a downward sloping yield curve Par Yield > Zero Rate > Fwd Rate (See Figure 4.3 on page 94)