Question: 18. What is the normal shape for the US Treasury Yield Curve? Downward sloping Upward Sloping Flat Humped 19. if the US Government budget deficit

18.

What is the "normal" shape for the US Treasury Yield Curve?

Downward sloping

Upward Sloping

Flat

Humped

19. if the US Government budget deficit is high this will tend to push US interest rates higher. True or False.

True

False

20.

Which of the relevant risk premia would you need to include when considering the appropriate rate of interest on a Long-term Corporate Bond?

Just the inflation premium.

Inflation Premium, Maturity Risk Premium, Default Risk Premium, and Liquidity Premium.

Inflation Premium and Liquidity Premium.

Default Risk Premium and Maturity Risk Premium.

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