Which of the Following Is True for the Party Paying

Multiple Choice

Which of the following is true for the party paying fixed in a newly negotiated interest rate swap when the yield curve is upward sloping?

A) The early forward contracts underlying the swap have a positive value and the later ones have a negative value
B) The early forward contracts underlying the swap have a negative value and the later ones have a positive value
C) The swap is designed so that all forward rates have zero value
D) Sometimes A is true and sometimes B is true