QUESTION 12 Which of the following is NOT true: when short-term interest rates rise above long-term interest rates, investors say the yield curve is inverted. Yields on longer-term bonds tend to be higher than yields on short-term bonds, principally stemming from inflation which erodes the value of fixed payments. Yields on long-term bonds are always higher than short-term bonds. None of these. The yield curve charts the annual interest rates paid on bonds of various maturities