The following information relates to Questions 49-57liz Tyo is a fund manager for an actively managed global fixed-income fund that buys bonds
issued in Countries A, b, and
-based on Exhibit 1 and assuming Tyo's market views on yield curve changes are realized, the forward curve of which country will lie below its spot curve?
A) Country A
B) Country b
C) Country C

Question

Quizplus · Accepted Answer

According to Exhibit 1, Country b has the steepest spot curve. If Tyo's market views on yield curve changes are realized, it is likely that the forward curve of Country b will flatten more than the spot curve, resulting in the forward curve lying below the spot curve.

The Following Information Relates to Questions 49-57liz Tyo Is a Fund