If Yields on One-Year Bonds Are Expected to Rise and the Liquidity

question 11

Multiple Choice

If yields on one-year bonds are expected to rise and the liquidity premium is zero, the yield curve will be

• A) upward sloping.
• B) flat.
• C) downward sloping.
• D) cannot be determined.

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Definitions:

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An abundance of valuable resources or material possessions, often leading to a level of financial security and the ability to influence or command resources.

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