Which of the following statements is correct??
A. ?The probability of default is higher on short -term bonds than on long-term bonds.
B. ?Reinvestment rate risk is lower, other things held constant, on long-term than on short-term bonds.
C. ?According to the market segmentation theory, the yield curve is expected to slope downward.
D. ?Borrowers prefer to borrow on a short-term basis, as a result, the yield curve is downward sloping.
E. ?If the inflation was expected to decrease in the future, then the yield curve would have an upward slope.
Answer: B
You might also like to view...
Answer the following statements true (T) or false (F)
1. The forced ranking performance review system may have negative effects on morale, productivity, and loyalty. 2. When it comes to performance appraisal feedback, the longer the appraisal document, the better. 3. Appraisals that are conducted on an unscheduled basis and consist of less rigorous indications of employee performance are known as unofficial appraisals. 4. The three parts of compensation are wages, incentives, and benefits.
All of the following are true of workplace incivility in the classroom except ______.
A. Students’ perception of incivility can relate to a professor’s competence. B. Students’ perception of incivility can relate to interest as well as respect for the individualism of students. C. Incivility in the classroom would not relate to workplace incivility as it is not a workplace. D. Perspective taking would be beneficial for classroom incivility.
Research has demonstrated that when consumers are exposed to a broad range of connector types,
A) they are less likely to express an interest in purchasing certain types of products. B) they are more likely to express an interest in purchasing certain types of products. C) their interest in purchasing certain types of products remains the same. D) they still make their purchase decisions based on conventional advertising messages. E) they tend to respond positively only to online connectors.
Some research suggests that advertising and MPR
A) are incompatible marketing techniques. B) both require enormous financial investment to be successful. C) help increase short-term sales but remain ineffective in the long-run. D) stimulate growth in newspaper readership. E) are equally effective techniques for building product awareness.