Which of the Following Statements Pertaining to the Yield Curve

question 6

Multiple Choice

Which of the following statements pertaining to the yield curve is not true?

• A) Yield curves usually slope upwards.
• B) The yield curve shows the difference in default risk between securities.
• C) The yield curve shows the relationship among bonds with the same risk characteristics but different maturities.
• D) The yield curve can be flat or downward sloping depending on market conditions.

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