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← The yield curve and interest rates
Question
1
/ 12
Practice
Technicals
Finance
Lv 2/5
The entire yield curve shifts sharply upward. All else equal, what is the likely effect on M&A and financing activity?
A
It cools, because higher yields make borrowing to fund deals more expensive
B
It heats up, because a higher curve makes debt cheaper to raise
C
There is no effect, because deal activity is unrelated to interest rates
D
It heats up, because higher yields lower every company's cost of debt
Select an answer
TechnicalsFinanceLv 2/5