Implications of an Upward-Sloping Yield Curve

Understanding the term structure of interest rates is essential for fixed income valuation. The term structure illustrates how interest rates on debt instruments vary based on their maturities. This variation can be analyzed using the yield curve, which plots the yields of bonds with differing maturities. A normal yield curve slopes upward, indicating that longer-term securities have higher yields than shorter-term ones.

Consider the following statement regarding interest rates:

"If the yield curve is upward sloping, it suggests that investors expect interest rates to increase in the future."

Which of the following options accurately reflects the implications of an upward-sloping yield curve?