Why does a normal yield curve rise? O A. increasing risk-free rate O B. increasing real rate of return O C. rising maturity premium OD. rising default premium Reset Selection Question 2 of 5 2 Points The effective rate is greater than or equal to the APR on a loan. True False Reset Selection Question 3 of 5 2 Points Which statement is false? O A. Present value increases as the discount rate decreases. B. The future value of an annuity due would be less than the future value of an otherwise identical ordinary annuity. OC. The real interest rate is not part of the risk-free rate. OD. The price and yield to maturity of a bond are inversely related. Which interest rate would have the lowest default premium? A. the coupon rate on a corporate bond B. the APR on a 30-year fixed-rate home mortgage loan OC. the yield on a one-year Treasury bill OD. the APR on a credit card Reset Selection Question 5 of 5 2 Points If the Federal Reserve increases the money supply, then, in the short run, the risk-free rate will... O A. not be affected OB. fall O Crise O D. become highly volatile