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If the yield curve is downward sloping, what is the yield to maturity on a 30-year treasury bond relative to a 10-year treasury bond?.

Sagot :

If the yield curve slopes downward, The yield on the 30 year bond is less then the yield on the 10 year bond

The yield curve is a graph that shows the yield of bonds at various maturities. The longer duration bonds will have a lower yield than shorter maturity bonds if the yield curve is downward sloping. As a result, the yield on a 10 year Treasury bond will be higher than one on a 30 year Treasury bond. This yield curve, commonly referred to as an inverted yield curve, is a warning sign for an impending recession.  It provides a summary of the relationship between the debt's term (or time till maturity) and the interest rate (or yield) related to that term.

To learn more about yield curve visit https://brainly.com/question/15073261

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