Suppose that a firm is facing an upward-sloping yield curve and needs to borrow money to invest in production. does this mean that the firm should consider borrowing only at short-term rates? no, the firm needs to take the volatility of short-term rates into account. yes, using short-term financing will give the firm the lowest possible interest rate over the life of the project. no, an upward-sloping yield curve means that the firm will get a lower interest rate if it uses long-term financing.