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Question 3: Imagine that you see a yield curve for a current corporate bond that...

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Question 3: Imagine that you see a yield curve for a current corporate bond that is upward sloping. What can you determine from this information? Long-term interest rates are more volatile than short-term rates. The economy is not in a recession. Inflation is expected to decline in the future. Maturity risk premiums could help to explain the yield curve's upward slope. Long-term bonds are a better buy than short-term bonds

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