Question $14$

The normal yield cilirve suggests

$($A$)$ that selecting short$-$term maturities for borrowing and long term for investing will be profitable.

$($B$)$ that reinvestment risk is higher for higher coupon rates.

$($C$)$ that short$-$term bonds give the best risk return trade$-$off.

$($D$)$ that short$-$term bonds provide the same return as long$-$term bonds.