18. In Chapter 36, we describe one common way to use the break-even forward rates. Investors can compare their subjective views about the yield-curve at some future date (or about the path of some constant-maturity rate over time) to the forward rates and directly determine whether bullish or bearish strategies are appropriate. If the rate changes that the forwards imply are realized, all bonds earn the riskless return [because (1 + s_n/100)ⁿ/(1 + f_1,n/100)ⁿ⁻¹ = 1 + s₁/100]. If rates rise by more than that, long bonds underperform short bonds. If rates rise by less than that, long bonds outperform short bonds because their capital losses do not quite offset their initial yield advantage.