Please elaborate whether the statement is right or wrong with reasons.

1. The yield curve is upward-sloping today. This suggests that the market consensus is that

interest rates are expected to increase in the future.

2. When I want to determine the markets consensus of future interest rates, I calculate the

forward rates.

3. A senior secured creditor has little risk of realizing a loss if the issuer goes into bankruptcy.

4. An investor who purchases the mortgage bonds of a corporation knows that should the

corporation become bankrupt; mortgage bondholders will be paid in full before the

common stockholders receive any proceeds.