Question: 3. For each statement below, indicate if it is TRUE or FALSE, and explain. (YTM of course stands for Yield to Maturity). a. The YTM

3. For each statement below, indicate if it is TRUE or FALSE, and explain. (YTM of course stands for Yield to Maturity).

a. The YTM is a measure of the investor's return from owning the bond till maturity, providing that interest rates and the risk of the bond hold steady over its life.

b. The YTM moves inversely with the risk-free rate in the overall economy.

c. Everything else equal (coupons, maturity, etc.), bonds with higher YTMs are subject to greater interest rate risk.

d.If the yield curve is downward-sloping, this indicates that investors expect short-term interest rates to decrease in the future.

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