subject
Business, 20.06.2020 22:57 queentynaisa

Inflation is expected to increase steadily over the next 10 years, there is a positive maturity risk premium on both Treasury and corporate bonds, and the real risk-free rate of interest is expected to remain constant. Which of the following statements is correct? 1. The yield on 7-year corporate bonds must exceed the yield on 10-year Treasury bonds.
2. The Treasury yield curve under the stated conditions would be humped rather than have a consistent positive or negative slope.
3. The yield on 10-year Treasury securities must exceed the yield on 7-year Treasury securities
4. The stated conditions cannot all be true they are internally inconsistent.
5. The yield on any corporate bond must exceed the yields on all Treasury ; bonds.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 03:30, levicorey846
Tiana daniels enterprise’s trial balance as at december 31, 2016 did not balance. on february 15, 2017 the following errors were detected: errorsi. water rates had been undercast by $2, 000.  ii. a cheque paid to yvonne walch of $2, 680 had been posted to the credit side of her account.  iii. discount received total of $1, 260 had been posted to the debit side of the discount allowed account as $1, 620.  iv. rent paid in the amount of $24, 000 had been posted to the credit of the rent received account.  v. wayne returned goods valuing $1, 680 to daniels enterprise but had been completely omitted from the books.    required: 1. prepare the journal entries to correct the errors.  (narrations required)                    14.5 marks  2.    prepare the suspense account showing clearly the original trial balance error.          8 marks
Answers: 2
image
Business, 22.06.2019 12:50, 20170020
Kyle and alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters jane and jill, respectively, to attend the university of california. jane is a sophomore and jill is a freshman. kyle and alyssa's agi is $135,000 and they file a joint return. what is their allowable american opportunity tax credit after the credit phase-out based on agi is taken into account?
Answers: 1
image
Business, 22.06.2019 20:20, misslux
An economic theory that calls for workers to take control of factories is .
Answers: 3
image
Business, 22.06.2019 21:00, atkinsonsinbraz
At present, the united states has an embargo against north korea because a. the two countries have extremely poor political relations. b. north korea will not adopt a capitalist government. c. north korean products are too difficult to use. d. north korea has an embargo on american products. e. products from north korea are in higher demand than american-made products.
Answers: 2
You know the right answer?
Inflation is expected to increase steadily over the next 10 years, there is a positive maturity risk...

Questions in other subjects: