Question: 4) True or False (no explanation needed) (20 points) a) The realized compound yield on a government coupon bond will always equal its YTM if

 4) True or False (no explanation needed) (20 points) a) The

4) True or False (no explanation needed) (20 points) a) The realized compound yield on a government coupon bond will always equal its YTM if the bond is held to maturity. b) According to the expectations hypothesis, an upward sloping yield curve implies short term rates are expected to rise. c) If 1, 2, and 3-yr zero coupon bonds have YTMs of 2%, 4%, and 3%, respectively, then according to the expectations hypothesis the 1-yr rate is expected to rise and then fall. d) Given that short-term interest rates are more volatile than long-term interest rates, it must be the case that short maturity bond prices are more volatile than long maturity bond prices

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