Question: Please explain about those two questions answer for why these answers are correct answer of each questions. 1. Which of the following concepts are not
Please explain about those two questions answer for why these answers are correct answer of each questions.
1. Which of the following concepts are not related to the interest rate risk premium of bond?
a. Credit rating (It is an answer)
b. Maturity
c. Coupon rate
d. Price
2. Suppose the 1-year Treasury bill yield is 1%, 2-year Treasury bill yield is also 1%. Based on the pure expectations hypothesis and the maturity risk premium, what do people expect about the next year's 1-year Tresury bill yields?
a. Lower than this year (correct answer)
b. Same as this year
c. Higher than this year
please explain to me why these answers are correct answer for each question
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