Multiple Choice
Consider the following returns and yields: U.S. T-bill = 8%, 5-year U.S. T-note = 7%, IBM common stock = 15%, IBM AAA Corporate Bond = 12% and 10-year U.S. T-bond = 6%. Based on this information, the shape of the yield curve is
A) upward sloping.
B) downward sloping.
C) flat.
D) normal.
Correct Answer:
Verified
Correct Answer:
Verified
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