The yield curve for U.S. Treasury securities allows us to draw the following conclusions, except that:
A) Long-term yields tend to higher than short term yields
B) Interest rates of different maturities tend to move together
C) Long-term rates tend to equal short-term rates
D) Yields on short-term securities are more volatile than yields on long-term bonds

Question

Quizplus · Accepted Answer

The yield curve for U.S. Treasury securities does not indicate that long-term rates tend to equal short-term rates. Rather, it typically shows that long-term yields tend to be higher than short-term yields, and that interest rates of different maturities tend to move together. Additionally, yields on short-term securities are typically more volatile than yields on long-term bonds.

The Yield Curve for U