Problem $24$

Part $1$

Alferrpt $1/5$ for $10$ pts$.$

An upward$-$sloping term structure of interest rates indicates:

$$ the nominal rate is declining as the time to maturlity increases

there is an indirect relationthip between nominal interest rates and time to maturly

the real rate of return is lower for short$-$term bonds than for long$-$term bonds

there is an indirect relationship between real interest rates and time to maturity

the nominal rate is increasing as the time to maturity increases