Question: Indicate whether the statement is true, false, or uncertain, and explain why. Your answers should be short and concise. The call feature reduces the expected

Indicate whether the statement is true, false, or uncertain, and explain why. Your answers should be short and concise.

  1. The call feature reduces the expected life of the bond.

  2. The value of a Treasury bond should be equal to the sum of the values of the STRIPs created from it.

  3. According to the Expectations Hypothesis, an upward sloping yield curve is based on the expectation that short-term interest rates will increase.

  4. An upward sloping yield curve necessarily implies expectations of higher future interest rates.

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