What yield curve shape is depicted if intermediate-term Treasury securities yield 10 percent, short-term Treasuries yield 10.5 percent, and long-term Treasuries yield 9.5 percent?
A) downward sloping
B) flat or level
C) upward sloping
D) U shaped

Question

Quizplus · Accepted Answer

The yield curve is downward sloping because the yields decrease as the maturity increases: short-term yields are the highest at 10.5%, intermediate-term yields are at 10%, and long-term yields are the lowest at 9.5%.

What Yield Curve Shape Is Depicted If Intermediate-Term Treasury Securities