15 - YourResults:...

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Your Results: The correct answer for each question is indicated by a  1 INCORRECT The yield curve shows at any point in time A) the relationship between yield on a bond and the time to  maturity on the bond. B) the relationship between the coupon rate on a bond and  time to maturity of the bond. C) the relationship between the yield on a bond and the  duration of the bond. D) all of the above E) none of the above Feedback: The yield curve shows at any point in time the relationship between yield on a bond and the time to maturity on the bond. 2 INCORRECT According to the expectations hypothesis, a normal yield curve implies that A) interest rates are expected to remain stable in the  future. B) interest rates are expected to decline in the future. C) interest rates are expected to increase first, then  decrease. D) interest rates are expected to decline first, then  increase. E) interest rates are expected to increase in the future. Feedback: According to the expectations hypothesis, a normal yield curve implies that interest rates are expected to increase in the future. 3 INCORRECT
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This note was uploaded on 03/06/2012 for the course FINANCE 5700 taught by Professor Bob during the Spring '12 term at websteruniv.edu.

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15 - YourResults:...

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