Assume That the Current Corporate Bond Yield Curve Is Upward

question 36

Multiple Choice

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

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

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