Yield Curve In class, we discussed why the yield curve is upward sloping. This means that interest rates are normally higher for long-term bonds than for short-term bonds. Which of the following may be a reason for this? Long-term bonds have more volatility than short-term bonds due to how they have later cash flows that are discounted at (1 + interest rate) to a higher power (i.e. (1+1)^n, where n's are a higher number for long-term bonds) Long-term bonds have lower default risk since cash flows in later periods are more certain than near-term cash flows Long-term bonds trade more frequently than short-term bonds Long-term bonds have less event risk than short-term bonds