A movement of the yield curve in which the short rate decreases by 150 bps and the

Question:

A movement of the yield curve in which the short rate decreases by 150 bps and the long rate decreases by 50 bps would best be described as a:

A. Flattening of the yield curve resulting from changes in level and steepness.

B. Steepening of the yield curve resulting from changes in level and steepness.

C. Steepening of the yield curve resulting from changes in steepness and curvature.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

Question Posted: