Question: Which of the following statements is CORRECT? Group of answer choices Because the maturity risk premium is normally positive, the yield curve is normally upward
Which of the following statements is CORRECT?
Group of answer choices
Because the maturity risk premium is normally positive, the yield curve is normally upward sloping.
The yield curve can never be downward sloping.
Because longterm bonds are riskier than shortterm bonds, yields on longterm Treasury bonds will always be higher than yields on shortterm Tbonds.
If the maturity risk premium MRP is greater than zero, then the yield curve must have an upward slope.
If the maturity risk premium MRP equals zero, the yield curve must be flat.
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