Which of the following statements is correct?
A) According to the unbiased expectations theory, the return for holding a two-year bond to maturity is equal to the nominal rate divided by the real interest rate.
B) The rate on a 10-year Corporate can never be less than the rate on a 10-year Treasury.
C) We usually observe the inverted yield curve.
D) The rate on a three-year Treasury can never be less than the rate on a 15-year Treasury.
Correct Answer:
Verified
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