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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Definitions:

Direct Payment

The monetary compensation paid directly to employees in the form of wages, salaries, commissions, and bonuses.

Goal-Sharing Plans

Incentive plans that reward employees for reaching specific organizational goals, similar to gain-sharing but often broader in scope.

Gain Sharing

A performance-based compensation strategy that rewards employees for contributing to their company's success through increased efficiency or profitability.

Historical Benchmark

A reference point derived from historical data against which current performance or achievements can be measured or compared.