Suppose the yield curve is upward sloping, but that expected future short-term rates are

Suppose the yield curve is upward sloping, but that expected future short-term rates are

constant. This may be because

A) compounding results in non-linear effects which increase long-term yields

B) bondholders prefer to hold short-term bonds for liquidity reasons

C) bondholders prefer to hold long-term bonds for liquidity reasons

D) markets are irrational

E) none of the above