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Basic Question 5 of 10

Which statement is an interpretation of an upward-sloping yield curve?

A. Government bonds tend to pay off in bad economic times.
B. Bond market participants expect short-term interest rates to decline.
C. Short-dated bonds are less positively (or more negatively) correlated with bad times than are long-dated bonds.

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain how the phase of the business cycle affects policy and short-term interest rates, the slope of the term structure of interest rates, and the relative performance of bonds of differing maturities;

describe the factors that affect yield spreads between non-inflation-adjusted and inflation-indexed bonds;

CFA® 2025 Level II Curriculum, Volume 6, Module 37.