The term structure of interest rates describes the relationship between long- and short-term rates. When these data are plotted, the resulting graph is called a yield curve. A(n) -Select-abnormalnormalhumpedItem 1 yield curve is upward sloping because investors charge higher rates on longer-term bonds, even when inflation is expected to remain constant. A(n) -Select-abnormalnormalhumpedItem 2 yield curve occurs when interest rates on intermediate-term maturities are higher than rates on both short- and long-term maturities. A(n) -Select-abnormalnormalhumpedItem 3 yield curve is downward sloping and indicates that investors expect inflation to decrease. The shape of the yield curve depends on expectations about future inflation and the effects of maturity on bonds' risk. Because of their additional default and liquidity risk, corporate bonds yield -Select-less thanequal tomore thanItem 4 Treasury bonds with the same maturity. In addition, the yield spread between corporate and Treasury bonds is -Select-smallerlargerzeroItem 5 the longer the maturity. This occurs because longer-term corporate bonds have -Select-lessmoresimilarItem 6 default and liquidity risk than shorter-term bonds, and both of these premiums are -Select-absentpresentItem 7 in Treasury bonds.