Analyze each of the following statements and determine whether it is True, False, or Uncertain. Provide strong point to support your argument.

1. Pat noticed that the Canadian bonds yield curve is upward sloping. She reported to her manager that short term interest rates will increase. Pat's prediction about the short interest rates rising is consistent with both the liquidity premium theory and the expectations theory.

1. The risk structure of the interest rates is the relationship among interest rates of bonds with different maturities.

1. An increase in the liquidity of corporate bonds will increase the price of corporate bond and will increase the yield of Government of Canada bonds, everything else held constant.

1. If a bank expects interest rates to decrease in the coming year, the bank should become more asset sensitive