If Yields on Long-Term Bonds Are Lower Than the Yields

question 24

Multiple Choice

If yields on long-term bonds are lower than the yields on short-term bonds, the term structure is said to be

• A)humped.
• B)downward sloping.
• C)flat.
• D)upward sloping.

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Definitions:

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A legally binding contract that is documented in writing and signed by all parties involved.

Implied Acceptance

An agreement to the terms of a contract demonstrated through actions or behaviors, rather than explicitly communicated through words.

Telegram Acceptance

The acceptance of a contractual offer or agreement through a telegram, historically significant for its immediacy and legal recognition.

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