Fixed Income【Reading 49】Sample
Suppose that there is a nonparallel downward shift in the yield curve. Which of the following best explains this phenomenon? A)
| The absolute yield increase is different for some maturities. |
| B)
| The absolute yield decrease is different for some maturities. |
| C)
| The yield decrease is the same for all maturities. |
|
A nonparallel downward yield curve shift indicates an unequal yield decrease across all maturities, i.e., some maturity yields declined more than others. |