Which of the following is/are correct regarding interest rates? Select all that apply. An inverted yield curve serves as a positive indicator for the future state of the economy. O The yield curve is...

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Extracted text: Which of the following is/are correct regarding interest rates? Select all that apply. An inverted yield curve serves as a positive indicator for the future state of the economy. O The yield curve is typically downward sloping. O Borrowers' preference for long duration and lenders' preference for short duration causes the term premium to be positive. O Prices of zero-coupon bonds are more sensitive to interest rate changes compared to coupon bonds with the same time to maturity. O Bonds with greater default risk typically trade at lower yield-to-maturities.