When a yield curve slopes downward and to the right, what best explains this pattern? Investors accept a lower rate of interest in a single bond because they know the bond issuer cannot afford higher interest payments in later years. Investors are willing to accepts lower rates for longer term maturities because they expect a recession and/or they are expecting inflation to decrease over time. A bond issuer issues bonds of different maturities with lower rates because they know they cannot afford interest payments in later years. Investors accept lower rates of interest in later years because the expect default risk and want to get their money back