SIE Exam Question 1015: Answer and Explanation

Question: 1015

Which of the following yield curves results from short-term debt instruments having a lower yield than long-term debt instruments of the same credit quality?

• A. Flat yield curve
• B. Inverted yield curve
• C. Normal yield curve
• D. Steep yield curve

Correct Answer: C

Explanation:

A normal yield curve results from short-term debt instruments having a lower yield than long-term debt instruments of the same credit quality.