Market evidence shows returns on holding short-maturity bonds for a small amount of time most often are:

Group of answer choices

[A] less than those on long-maturity bonds

[B] about equal to those on long-maturity bonds

[C] greater than those on long-maturity bonds

[D] cannot determine

The expectation theory of the term structure of interest rates states that:

Group of answer choices

[A] forward rates are determined by investors' expectations of future interest rates.

[B] forward rates exceed the expected future interest rates.

[C] yields on long-and short-maturity bonds are determined by the supply and demand for the securities.

[D] All of the above.

[E] None of the above.

According to the expectation hypothesis, an upward sloping yield curve implies that:

Group of answer choices

[A] interest rates are expected to remain stable in the future

[B] interest rates are expected to decline in the future

[C] interest rates are expected to increase in the future

[D] interest rates are expected to decline first, then increase

[E] interest rates are expected to increase first, then decrease