What is the shape of the yield curve if 20-year treasury bond rates exceed 1-year treasury bond rates? a. Downward sloping b. Flat c. Upward sloping d. None of the above

Respuesta :

Answer: c. Upward sloping

Step-by-step explanation:

Yield curves is a plot of interest rates of bonds that has same credit value but different maturities.

Upward sloping curve is obtained where longer-term bonds have greater yields than short-term bonds.

Therefore, the shape of the yield curve if 20-year treasury bond rates exceed 1-year treasury bond rates is an upward sloping curve.

The shape of the yield curve, if 20-year Treasury bond rates exceed 1-year treasury bond rates is an upward sloping curve.

What is the linear system?

It is a system of an equation in which the highest power of the variable is always 1. A one-dimension figure that has no width. It is a combination of infinite points side by side.

The shape of the yield curve if 20-year treasury bond rates exceed 1-year treasury bond rates.

The yield curve is a plot of interest rates of bonds that has the same credit value but different maturities.

The upward sloping curve is obtained where longer-term bonds have greater yields than short-term bonds.

Thus, the shape of the yield curve if 20-year Treasury bond rates exceed 1-year treasury bond rates is an upward sloping curve.

More about the linear system link is given below.

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