The Existence of an Upward-Sloping Yield Curve Suggests That

question 45

Multiple Choice

The existence of an upward-sloping yield curve suggests that:

• A) bonds should be selling at a discount to par value.
• B) bonds will not return as much as common stocks.
• C) interest rates may be increasing in the future.
• D) real interest rates will be increasing soon.

---

Definitions:

Weighted Average Cost

The total cost of goods available for sale divided by the number of goods available for sale, giving each item a weight proportional to its cost.