Possible shapes for the yield include all of the following EXCEPT:
A) humped.
B) downward sloping.
C) flat.
D) All of the options are possible shapes.

Question

Quizplus · Accepted Answer

The shape of the yield curve can take on many forms, including upward sloping (normal), downward sloping (inverted), or flat. It can also take on a humped shape, with yields on intermediate maturities higher than those on short and long maturities. Therefore, all of the options are possible shapes for the yield curve.

Possible Shapes for the Yield Include All of the Following