influence the rate that Carson has to pay over the 10-year period? e. An upward-sloping yield curve suggests that the ini- tial rate that financial institutions could charge on a long- term loan to Carson would be higher than the initial rate that they could charge on a loan that floats in accordance with short-term interest rates. Does this imply that credi- tors should prefer offering Carson a fixed-rate loan to offering it a floating-rate loan? Explain why Carson's expectations of future interest rates are not necessarily the same as those of some financial institutions. 2. Based on the various theories attempting to