Assume the current interest rate on a one-year bond is 7%, and the interest rate investors expect on the one-year bond one year from now is 3%

According to the expectations hypothesis, the current interest rate (per year) on a two-year bond should be A) 3%.
B) 5%.
C) 7%.
D) 10%.


B

Economics

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Indicate whether the statement is true or false

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Which of the following is an example of behavior that is not rational?

A) buying stocks after stock prices have declined B) buying stocks after stock prices have risen C) a significantly higher enrollment in 401K plans if people are automatically enrolled rather than having the option of signing up on their own D) enrollment in 401K plans during a bear market

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Deadweight loss results from a misallocation of resources

a. True b. False Indicate whether the statement is true or false

Economics

The conservative theory of poverty blames _____ for welfare dependency.

A. the poor B. the government C. both the poor and the government D. neither the poor nor the government

Economics