A given yield curve shows:

A. the relationship between short-term interest rates and long-term interest rates for bonds of a given default risk class

B. the interest rate on savings and the interest rate on borrowing

C. the relationship between interest rates on U.S. gov. bonds and corporate bonds

D. the relationship between interest rates in the U.S. and an average of international interest rates

Why would theTreasuryyield curve slope upward?

A. The curve slopes upward when short-term rates are greater than long-term rates on Treasury securities.

B. Long-term treasury bonds have a liquidity premium; short-term treasury bonds do not.

C. Long-term treasury bonds have a default risk premium; short-term treasury bonds do not have a default risk premium.

D. Long-term Treasury bonds have greater inflation and maturity risk premiums than short-term bonds.