Assume That the Current Corporate Bond Yield Curve Is Upward

question 80

Multiple Choice

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

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

---

Definitions:

Neurological Condition

A disorder affecting the nervous system, which includes the brain, spinal cord, and nerves.

Defibrillator

A defibrillator is a medical device used to deliver a dose of electric current (shock) to the heart in order to correct irregular heart rhythms and potentially prevent cardiac arrest.

Irregular Heart Rhythm

An abnormality in the frequency or pattern of the heartbeat, which can include conditions such as arrhythmias.

Regular Sinus Rhythm

The normal heart rhythm, originating from the sinoatrial node, characterized by a consistent rate and rhythm.