Which of the following statements about the yield curve is TRUE （）
A. If long-term rates are low, the present value of cash flows far into the future will be low, and the bond’s value will be low.
B. Parallel shifts in the yield curve are not of concern to bond investors.
C. In a typical upward sloping yield curve, short and intermediate term rates are lower than long term rates.
参考答案：C
解析：
The statement A should read, "If long-term rates are low, the present value of cash flows far into the future will be high, and the bond’s value will be high." The value of a bond is comprised of discounted cash flows, and a lower discount rate translates to higher cash flows. Any shift in the yield curve creates uncertainty and is of concern to bond investors.
sin
V