Question: Question 8 and 9 please:) If the yield curve is normal, what is the interest rate on a 20-year Treasury bond, compared to the interest
If the yield curve is normal, what is the interest rate on a 20-year Treasury bond, compared to the interest rate on a 5 -year Treasury bond? The interest rate on the 20 -year bond will be more than the interest rate on the 5 -year bond. The interest rate on the 5 -year bond will be more than the interest rate on the 20-year bond. The interest rates of the two bonds will be equal. It is impossible to tell without knowing the relative risks of the bonds. QUESTION 9 Which of the following risk premiums apply to both corporate securities and federal government securities? Liquidity risk only Default risk only Both liquidity risk and maturity risk Maturity risk only Both default risk and liquidity risk
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