Question: Hello! Can you help me to answer this question? I already chose answer D, but it still shows me the answer is wrong. If the
Hello! Can you help me to answer this question? I already chose answer D, but it still shows me the answer is wrong.
If the yield curve is downward sloping, which of the following statements is correct? (hint: graph the yield curves for a T-bond, a AAA bond, and a B bond)
Group of answer choices
a. The yield on the 5-year T-bond must exceed the yield on the 10-year AAA corporate bond.
b. The yield on the 5-year T-bond must be smaller than the yield on the 5-year AAA corporate bond.
c. The yield on the 5-year AAA corporate bond must exceed the yield on the 5-year B corporate bond.
d. The yield on the 10-year T-bond must exceed the yield on a 2-year T-bond.
e. The yield on the 10-year AAA corporate bond must be higher than the yield on the 5-year B corporate bond.
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