Yields on long term bonds are,in principle,equal to
A) an average of current and expected future money market rates
B) rates of return on stock issued by the same companies
C) the fed funds rate
D) the difference between the bond prices and par values, expressed as a percentage of current prices
E) the rate of inflation expected in the economy
Correct Answer:
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Q41: Compared to bonds with otherwise identical characteristics,which
Q42: A bond sells at a premium when
A)
Q43: All else being equal,which of the following
Q44: The difference,or spread,between short-term and long-term bond
Q45: The yield curve depicts the relationship between
A)
Q47: The yield on a bond
A) is fixed
Q48: An inverted,or downward-sloping,yield curve signals
A) a high
Q49: Central banks
A) influence the money market but
Q50: Higher short term interest rates
A) benefit bondholders
B)
Q51: Contractionary monetary policy can be expected to
A)
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