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