Question: please help me with that dont understand Question 10 (Mandatory) (3.2 points) Which of the following will increase the present value of an annuity? The



Question 10 (Mandatory) (3.2 points) Which of the following will increase the present value of an annuity? The discount rate decreases. The number of periods the annuity is received decreases. The final payment diminishes. The discount rate increases. Question 11 (Mandatory) (3.2 points) Which of the following is the risk that a security issuer will miss an interest or principal payment or continue to miss such payments? Default risk Liquidity risk Maturity risk Price risk Question 12 (Mandatory) (3.2 points) Which of the following is the continual increase in the price level of a basket of goods and services? O Inflation Oo oo Deflation Recession Stagflation Question 13 (Mandatory) (3.2 points) One-year interest rates are 3 percent. The market expects one-year rates to be 5 percent one year from now. The market also expects one-year rates to be 7 percent two years from now. Assume that the unbiased expectations theory holds. Which of the following is correct? The yield curve is upward sloping. We need the maturity risk premiums to be able to answer this question. The yield curve is flat. The yield curve is downward sloping
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
