Question

Assume that the current corporate bond yield curve is upward sloping. Under this condition, then we could be sure that Select one:
a. The economy is not in a recession.
b. Long-term bonds are a better buy than short-term bonds.
c. Inflation is expected to decline in the future.
d. Long-term interest rates are more volatile than short-term rates.
e. Maturity risk premiums could help to explain the yield curve's upward slope.

Answer 1

The answer is E

Because uu have to take a risk of what uu are doing abs uu have to help explain yourself