Question: Assume the following returns and yields: U . S . 1 minus year Tminus bill = 8 % , 5 minus year U . S

Assume the following returns and yields: U.S.
1minusyear
Tminusbill
=8%,
5minusyear
U.S.
Tminusnote
=7%, IBM common stock=15%, IBM AAA Corporate Bond=12% and
10minusyear
U.S.
Tminusbond
=6%. Based on this information, the shape of the yield curve is________.
Question content area bottom
Part 1
A.
normal
B.
upward sloping
C.
flat
D.
downward sloping

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