Options are [ higher, lower]

Question 5 4 pts ABC Company and CBS Company are rated "A" and "BBB", respectively, by the credit rating agency Standard & Poor's. If the ABC Company bonds were going to be sold with a yield of 6.00%, an investor considering buying the bonds of both companies, would likely require a [ Select] rate of return on the CBS Company bonds to compensate them for the [Select risk of the CBS bonds Vs. the ABC bonds. Question 6 4 pts If the normal shape of US Treasury securities yield curve is upward (positive) sloping and short-term interest rates are lower than long-term interest rates, one explanation for a downward sloping yield curve would be that investors expect inflation to decline in the future (See Figure 5.5 in your textbook - Illustrative Yield Curves for Treasury Securities). True False