1 . For each statement below , indicate if it is TRUE or FALSE , and explain . ( ' TIM " of course stands for " Yield to Maturity " ) . a ) The YIM is a measure of the investor's return from owning the bond till maturity , providing that interest rates and the risk of the bond hold steady over its life . b ) The !I'M moves inversely with the risk - free rate in the overall economy . C ) Everything else equal ( coupons , maturity , etc . ) , bonds with higher YIMS are subject to greater interest rate risk . d) If the vield curve is downward - sloping , this indicates that investors expect short - term interest rates to decrease in the future