Which of the following statements regarding yield curves is true?
A) Yields on corporate debt securities will move in the same direction as government securities.
B) Yields on corporate debt securities are considered a greater financial risk and will have higher interest rates.
C) Yield curves for corporate securities change daily to reflect current competitive conditions.
D) All of the options above are correct.

Question

Quizplus · Accepted Answer

All the statements provided are correct regarding yield curves. A) Corporate and government security yields generally move in the same direction because they are influenced by the same economic factors. B) Corporate debt securities typically offer higher yields than government securities due to the higher risk associated with them. C) Yield curves for corporate securities do change daily, reflecting the current market conditions and competitive environment.

Which of the Following Statements Regarding Yield Curves Is True