The yield curve is typically ________,meaning that the annualized interest is higher for debt securities with longer terms to maturity.
A) upward sloping
B) horizontal
C) downward sloping
D) vertical

Question

Quizplus · Accepted Answer

The yield curve is typically upward sloping, meaning that the annualized interest is higher for debt securities with longer terms to maturity. This reflects the higher risk associated with lending money for a longer period of time, as well as the expectation of inflation and economic growth over time.

The Yield Curve Is Typically ________,Meaning That the Annualized Interest