Multiple Choice
The interest rate on one year Treasury Bonds is 5 percent.The interest rate on five year Treasury Bonds is 7.5 percent.The interest rate on ten year Treasury Bonds is 10 percent.What is true about the yield curve?
A) It is upward sloping.
B) It is downward sloping.
C) It is a horizontal curve.
D) It is a vertical curve.
E) It is parallel to the x-axis.
Correct Answer:
Verified
Correct Answer:
Verified
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