Assume That the Current Corporate Bond Yield Curve Is Upward

question 72

Multiple Choice

Assume that the current corporate bond yield curve is upward sloping,or normal.Under this condition,we could be sure that

• A) Long-term interest rates are more volatile than short-term rates.
• B) Inflation is expected to decline in the future.
• C) The economy is not in a recession.
• D) Long-term bonds are a better buy than short-term bonds.
• E) Maturity risk premiums could help to explain the yield curve's upward slope.

---

Definitions:

P-Value

A statistical measure that helps scientists determine the significance of their research results.

Retention Rate

A metric usually used to measure the percentage of individuals or employees who remain engaged with an institution, company, or program over a given period.

Random Sample

A sample drawn in such a way that every member of the population has an equal chance of being selected.

Null Hypothesis

A statement used in statistical testing, which proposes that no significant difference exists between certain characteristics of a population.