Why do yield curves sometimes have a downward slope

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1. Why do yield curves sometimes have a downward slope and at other times have an upward slope?

2. What is the primary difference between 20-year bonds issued by the U.S. government and 20-year bonds issued by IBM?

3. Is it possible for investors ever to require a lower rate of return on a company's equity than on its debt, assuming that the debt is in a junk-bond category of quality?

Reference no: EM131338799

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