Assume that the current corporate bond yield curve is upward sloping, or normal. Under this condition, we could be sure tha:

• a.Long Term interest rates are more volatile than short term rates.
  • b.Inflation is expected to decline in the future.
  • c.The economy is not in a recession.
  • d.Long Term bonds are a better buy than short term bonds.
  • e.Maturity risk premiums could help to explain the yield curves upward slope.