The yield curve normally has a ____ first derivative and a _____ second derivative.
A) positive, positive
B) positive, negative
C) negative, positive
D) negative, negative

Question

Quizplus · Accepted Answer

The yield curve typically has a positive first derivative, indicating that yields increase with longer maturities. The second derivative is usually negative, suggesting that the rate of increase in yields diminishes as maturity lengthens.

The Yield Curve Normally Has a ____ First Derivative and a _____

The Yield Curve Normally Has a First Derivative and a _