If 1-year interest rates for the next five years are expected to be 4, 2, 5, 4, and 5 percent, and the 5-year term premium is 1 percent, than the 5-year bond rate will be
A) 2 percent.
B) 3 percent.
C) 4 percent.
D) 5 percent.
D
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Rich people who have more money than they know how to spend
A) no longer act under scarcity. B) no longer need to economize. C) no longer have to choose to advance one project over another. D) will still face a scarcity of their time.
In which way are tariffs different from quotas?
A) They reduce the volume of imported products. B) They raise the price of the imported products to consumers. C) They increase the domestic quantity supplied of the product. D) They raise government revenue.
When an emissions tax is imposed on production of a good, the price will be __________ than it would be in the absence of the tax, and the equilibrium quantity will be __________ :
a. higher, higher b. lower, lower c. lower, higher d. higher, lower
Compare and contrast the burden of internally financed debt to externally financed debt.
What will be an ideal response?