Question: Identify the statement below that is untrue on the term structure of interest rates: Multiple Choice The interest rate risk premium increases as the time

of interest rates: Multiple Choice The interest rate risk premium increases as

Identify the statement below that is untrue on the term structure of interest rates: Multiple Choice The interest rate risk premium increases as the time to maturity increases The real rate of return has minimal, if any, effect on the slope of the term structure of interest rates. Expectations of lower inflation rates in the future tend to lower the slope of the term structure of interest rates. The term structure of interest rates includes both an Inflation premium and an interest rate risk premium. The term structure of interest rates and the time to maturity are O The interest rate risk premium increases as the time to maturity increases. The real rate of return has minimal, if any, effect on the slope of the term structure of interest rates. Expectations of lower inflation rates in the future tend to lower the slope of the term structure of interest rates. O The term structure of interest rates includes both an inflation premium and an interest rate risk premium. The term structure of interest rates and the time to maturity are always directly related

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