Possible shapes for the yield curve include all of the following except ___________.
A) Upward sloping
B) Humped
C) Horizontal line
D) Vertical line

Question

Quizplus · Accepted Answer

A vertical line would not represent a yield curve as it would imply that all maturities have the same yield, which is unrealistic. Therefore, all other options (upward sloping, humped, and horizontal line) are possible shapes for the yield curve.

Possible Shapes for the Yield Curve Include All of the Following