Question: your time wisely Good e (1 pt each) use seastron Money markets would include which of the folowing securities a common stock and corporate bonds
your time wisely Good e (1 pt each) use seastron Money markets would include which of the folowing securities a common stock and corporate bonds b. treasury bills and commercial paper e centificates of deposit and preferred stoek d. all of the above rate three years from 1 5,50%, respectively now if three and four-year spot rates are 5, 80% and 3 4. The rate cannot be calculated from the 2 According to the expectations theory, what is the one-year forwar information above b. e, d. e. 6.2% 6,796 5.6% 4.6% 3. Default risk premiums vary with the of the security a.directly; default risk b. inversely; default risk inversely; maturity d. directly; marketability 4, Which of the following is not a characteristic of money market instrume a. b, small denominations e, short term to maturity nts? low default risk d. high marketability e All of the above are characteristics of money market securities 5. According to the expectations theory of the term structure of interest rates a. investors prefer holding short-term securities b. the shape of the yield curve is determined by investors expectatioms term interest rates e. institutional investors' maturity preferences determine the shape o d. investors always expect short-term interest rates to increase e. both a and b
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