True, false, or uncertain: Given that the yield curve is generally upward sloping,
longer-term bonds are better investments than shorter-term bonds because they offer
higher returns.

Question

Quizplus · Accepted Answer

You get what you pay for. Longer-term bonds offer higher returns because there is more risk involved since longer-term bonds experience greater changes in prices for any given change in interest rates than shorter-term bonds that are identical in all other respects.

True, False, or Uncertain: Given That the Yield Curve Is