Assume That the Current Corporate Bond Yield Curve Is Upward

question 13

Multiple Choice

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

• A)Inflation is expected to decline in the future.
• 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.

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