05: The Cost of Money (Interest Rates): SP20 CTE2001JFHAJ Banking & Finance Assessment It is impossible to tell without knowing the relative risks of the two bonds. orrect Question 36 0/1 pts Assume that the current yield curve is upward sloping or normal. This implies that: short-term interest rates are more volatile than long-term rates. inflation is expected to subside in the future. the economy is at the trough of a business cycle. Incorrect. The slope of a yield curve indicates the increase or decrease in the expected return on an investment. See 5-3: The Term Structure of Interest Rates long-term bands are less attractive to investors than short-term bonds. short-term interest rates are lower than the long-term interest rates. Question 37 1/1 pts