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Assume that the current corporate bond yield curve is upward sloping, or normal. Under this condition, we could be sure that Long-term interest rates are
Assume that the current corporate bond yield curve is upward sloping, or normal. Under this condition, we could be sure that Long-term interest rates are more volatile than short-term rates. Inflation is expected to decline in the future. The economy is not in a recession. Long-term bonds are a better buy than short-term bonds. Maturity risk premiums could help to explain the yield curve's upward slope
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