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Because the maturity risk premium is normally positive, the yield curve must have an upward slope. If you measure the yield curve and find a

Because the maturity risk premium is normally positive, the yield curve must have an upward slope. If you measure the yield curve and find a downward slope, you must have done something wrong.

True False

An upward-sloping yield curve is often call a normal yield curve, while a downward-sloping yield curve is called abnormal.

True False

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