The Yield on a 30-Year U

Multiple Choice

The yield on a 30-year U.S. Treasury security is 6.5%; the yield on a 2-year U.S. Treasury bond is 4.0%. This data:

A) Indicate the yield curve is downward sloping
B) Indicate the yield curve is flat since the risk premium needs to be added for longer maturities
C) Indicate the yield curve is upward sloping
D) Indicate that people expect inflation to decrease in the future