The U.S. Treasury yield curve:
A) shows the relationship among bonds with the same risk characteristics but different maturities.
B) assumes maturities are constant, and reflects the difference in risk.
C) always has a positive slope.
D) always has a negative slope.

Question

Quizplus · Accepted Answer

The U.S. Treasury yield curve shows the relationship among bonds with the same risk characteristics but different maturities. It does not assume maturities are constant, nor does it always have a positive or negative slope. The slope of the curve can vary depending on market conditions and investors' expectations.

The U.S. Treasury Yield Curve