If the slope of the yield curve is positive, this means which of the following?
A)Yields decline as the term to maturity increases.
B)Yields decline as the term to maturity decreases.
C)Yields rise as the term to maturity increases.
D)Yields rise as the term to maturity decreases.

Question

Quizplus · Accepted Answer

A positive slope of the yield curve means that yields are rising as the term to maturity increases. This is because investors demand higher yields to compensate for the increased risks associated with longer-term investments.

If the Slope of the Yield Curve Is Positive, This