When yield curves are downward sloping, long-term interest rates are above short-term interest rates.
举一反三
- 【单选题】An upward-sloping term structure of interest rates indicates that: A. longer-term rates are higher than shorter-term rates B. investors should expect interest rates to decline in the future C. short and intermediate term rates are real rates while long term rates are nominal rates D. the Fed is expected to decrease rates in the near term E. the larger the investment in dollars, the higher the interest rate paid
- 中国大学MOOC: The term structure of interest rates assumes that
- According to the pure expectations theory, an upward-sloping yield curve implies: A: interest rates are expected to decline in the future. B: interest rates are expected to increase in the future. C: longer-term bonds are riskier than short-term bonds.
- According to the market segmentation theory of the term structure,________ A: the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity. B: bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time. C: investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope upward. D: all of the above. E: none of the above.
- Under which of the following conditions would a firm be most likely to issue variable-rate debt（） A: Operating cash flows are positively correlated with short-term interest rates. B: Operating cash flows are negatively correlated with short-term interest rates. C: The yield curve is sloping sharply downward.