When referring to an "upward sloping" yield curve, interest rates:
A) are flat across all maturities
B) decrease as maturity increases
C) increase as maturity decreases
D) increase as maturity increases

Question

Quizplus · Accepted Answer

An upward sloping yield curve means that interest rates are increasing as maturity increases. This is because investors demand higher rates to invest in longer-term bonds to protect against inflation and other risks.

When Referring to an "Upward Sloping" Yield Curve, Interest Rates