A downward sloping yield curve indicates a possible future recession.
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Q10: Government bonds are more liquid than corporate
Q11: If a positive liquidity premium is included
Q12: Positive spreads (long term rates - short
Q13: An AAA bond has lower default risk
Q14: A two-year bond is a perfect substitute
Q16: A blue chip bond has greater default
Q17: An increase in expected inflation has an
Q18: An increase in expected inflation increases the
Q19: The U.S. Federal government has never defaulted
Q20: , a blue chip bond has a
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