1.What does a higher effective annual interest rate usually indicate for a bond?

a.The bond is less risky

b.The bond is riskier

c.The bond has a shorter term

2.

Based on the figure below, which best describes the relationship. between GDP measures and short-term interest rates? When potential GDP increases short-term interest rates tend toincrease. OWhen actul GDP increases, sin ot iterm interest rates, tend to decrease. iend to therease