When compared to the yield curve for Treasury securities, the yield curve for corporate securities should
A) slope in the opposite direction.
B) be similar in shape but higher.
C) be similar in shape but lower.
D) be nearly identical.

Question

Quizplus · Accepted Answer

Corporate securities typically offer higher yields than Treasury securities due to the higher risk associated with them. However, the shape of their yield curves tends to be similar, reflecting the general market conditions and expectations about future interest rates.

When Compared to the Yield Curve for Treasury Securities, the Yield