9. Factorsthat impact the yield curve There are three factors that can affect the shape of the Treasury yieid curve (t,1P, and MRP1) and five foctors that can affect the thace of the corporate yield curve (f4,IPT,MRPt,DRP, and LP,h. The yleld curve reflects the aggregation of the impacts from these factors. Suppose the real risk-free rate and inflation rate are expected to remain at their curfent levels throughout the foresteable future. Consider ail factors that affect the yieid curve. Which of the following shapes can the U.S. Treasury yield curve take? Check all ehat apply. Downward-sloping yield curve Inverted yeld curve Upward-sloping yield curve A L.S. Theasiary yield cunve is ploted in the following araph: Based on an upward-sioping normal yield curve as shown, which of the following statements is correct? Inflation must be expected to increase in the future. If the pure expectations theory is correct, future short-term rates are expected to be higher than current short-terin rates. There is a positive maturity risk premium. Pure expectations theory must be correct