The existence of an upward-sloping yield curve suggests that:
A)Bonds should be selling at a discount to par value
B)Bonds will not return as much as common stocks
C)Interest rates will be increasing in the future
D)Real interest rates will be increasing soon

Question

Quizplus · Accepted Answer

An upward-sloping yield curve indicates that long-term interest rates are higher than short-term interest rates. This means that the market is anticipating an increase in interest rates in the future.

The Existence of an Upward-Sloping Yield Curve Suggests That