Because the maturity risk premium is normally positive,the yield curve is normally upward sloping.

Name: Because the maturity risk premium is normally positive,the yield curve is normally upward sloping.
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The maturity risk premium is a key factor in determining the shape of the yield curve. Since it is typically positive, longer-term interest rates should be higher than short-term interest rates, resulting in an upward sloping yield curve.

Because the Maturity Risk Premium Is Normally Positive,the Yield Curve