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Corporate Finance · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 7: Which of the following statements regarding the Yield Cur…

Question 7

+4 marksOne correct option

Which of the following statements regarding the Yield Curve is FALSE?

  1. A

    An inverted yield curve is often considered a predictor of recession.

  2. B

    A normal yield curve is upward sloping.

  3. C

    The yield curve plots the relationship between interest rates and default risk.

  4. D

    The yield curve plots the relationship between interest rates and time to maturity.

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Correct answer

  • C

    The yield curve plots the relationship between interest rates and default risk.

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Question 7 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Corporate Finance 15 Mar 26). It carries 4 marks.

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