If the Treasury yield curve were downward sloping,the yield to maturity on a 10-year Treasury coupon bond would be higher than that on a 1-year T-bill.

Question

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A downward-sloping yield curve indicates that short-term interest rates are higher than long-term rates, meaning the yield to maturity on a 1-year T-bill would be higher than that on a 10-year Treasury coupon bond.

If the Treasury Yield Curve Were Downward Sloping,the Yield to Maturity