Interest rate (price) risk is higher on long-term bonds, but reinvestment rate risk is higher on short-term bonds. b. An upward-sloping yield curve would imply that interest rates are expected to be lower in the future. c. The yield on a 5-year corporate bond should always exceed the yield on a 3-year Treasury bond. d. If a 1-year Treasury bill has a yield to maturity of 7% and a 2-year Treasury bill has a yield to maturity of 8%, this would imply the market believes that 1-year rates will be 7.5% one year from now. e. Interest rate (price) risk is higher on short-term bonds, but reinvestment rate risk is higher on long-term bonds.