Comprehensive research on the main influences of the shape of the Treasury yield curve was done by Antti Ilmanen in a series of papers. He finds that there are three main influences. Which of the below is NOT one of these main influences?
A) One influence concerns the market's expectations of future rate can changes (in a way predicted by the pure expectations theory) .
B) One influence concerns bond risk premiums.
C) One influence concerns convexity bias.
D) One influence concerns convexity premiums (in a way predicted by the preferred habitat theory) .
Correct Answer:
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Q22: Which of the below statements about the
Q23: Given the spot rates, the theoretical value
Q24: For a flat yield curve, the yields
Q25: If the implied forward rates are realized,
Q26: According to the _, the forward rates
Q28: Ilmanen argues that the _ is the
Q29: By convention, when the maturity spread for
Q30: Which of the below statements is FALSE?
A)
Q31: If we assume an initially flat term
Q32: Two major theories have evolved to account
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