Term structure of interest rates
I came across this question in chapter 4 of Hull 'Options Futures and other Derivatives'. I have the answer but Im not sure what the explanation is. Could anyone help?
The term structure of interest rates is upward sloping. Put the following in order of magnitude :
a) the 5 year zero rate
b) the yield on a 5 year coupon bearing bond
c) The forward rate corresponding to the period between 4.75 and 5 years in the future
The answer is c > a > b, but why?