请问

问题如下：

If one-period forward rates are decreasing with maturity, the yield curve is most likely:

选项：

A.

flat

B.

upward-sloping

C.

downward sloping.

解释：

C is correct.

If one-period forward rates are decreasing with maturity then the forward curve is downward sloping. This turn implies a downward sloping yield curve where longer term spot rates r(T + T*) are less than shorter term spot rates r(T).

考点：forward rate与yield curve之间的关系

如果一年期的远期利率下降，forward curve向下倾斜。这也意味着spot curve是向下倾斜的，即长期的spot rate r(T+T*)小于短期的spot rate r(T)。