If the yield curve is normal , what is the interest rate on a 20-year Treasury bond, compared to the interest rate on a 5-year Treasury bond?
A) The interest rate on the 20-year bond will be more than the interest rate on the 5-year bond.
B) The interest rate on the 5-year bond will be more than the interest rate on the 20-year bond.
C) The interest rates of the two bonds will be equal.
D) It is impossible to tell without knowing the relative risks of the bonds.
Correct Answer:
Verified
Q71: Which of the following statements is/are TRUE?
A)A
Q72: The _ theory states that the yield
Q73: The interest rates we observe in the
Q74: Which of the following theories can be
Q75: The liquidity preference theory of interest rates
Q77: Which of the following risk premiums apply
Q78: Which of the following is not associated
Q79: Which of the following is not a
Q80: If inflation is viewed as a "sustained
Q81: By which means does the production sector
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents