Current corporate bond yield curve


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

Long-term interest rates are more volatile than short-term rates.

Inflation is expected to decline in the future.

The economy is not in a recession.

Long-term bonds are a better buy than short-term bonds.

Maturity risk premiums could help to explain the yield curve's upward slope.

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Finance Basics: Current corporate bond yield curve
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