For many years, real rates of interest tended to fluctuate more wildly than nominal rates of interest.

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Consider the impact of inflation risk on the term structure of interest rates. If investors become more wary of inflation, one would expect to observe a steeper, more upwards sloping, term structure of interest rates.

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The spread of junk bond yields, over that of United States Treasuries, is generally lower than the spread of investment-grade bonds.

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