Question: The yield curve shown below implies that the Interest rate % Years to maturity a. Credit risk premium of corporate bonds has increased. b. Credit

The yield curve shown below implies that the Interest rate %

Years to maturity

a. Credit risk premium of corporate bonds has increased.

b. Credit risk premium of municipal bonds has increased.

c. Long-term interest rates have a higher annualized yield than short-term rates.

d. Short-term interest rates have a higher annualized yield than long-term rates.

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