Assume that the current corporate bond yield curve is upward sloping, or normal. Under this condition, we could be sure that

A. Long-term interest rates are more volatile than short-term rates.
B. Inflation is expected to decline in the future.
C. The economy is not in a recession.
D. Long-term bonds are a better buy than short-term bonds.
E. Maturity risk premiums could help to explain the yield curve's upward slope.


Answer: E

Business

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