Question: What is the most common shape does the yield curve take? Why?(4 points) Upward Sloping; Due to Interest Rate Risk Downward Sloping; Due to Inflation

What is the most common shape does the yield curve take? Why?(4 points)

Upward Sloping; Due to Interest Rate Risk

Downward Sloping; Due to Inflation Premium

Upward Sloping; Due to Inflation Premium

Downward Sloping; Due to Interest Rate Risk

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