Which of the statements below is TRUE regarding interest rates in the period 1950-1999?
A) Inflation averaged 1.18%.
B) The real rate averaged 4.05%.
C) The default premium averaged 7.05%.
D) The maturity premium averaged 1.28% (for twenty-year maturity differences).
Answer: D
Explanation: D) For the period 1950-1999, inflation averaged 4.05%, the real rate averaged 1.18%, the maturity premium averaged 1.28% (for twenty-year maturity differences), and the default premium averaged 0.49% (for AAA over government bonds).
You might also like to view...
Several diagramming sets were developed by the 1970s, but in the late-1990s, a de facto standard emerged: _____.
A. algebraic modeling language B. discipline-specific modeling language C. unified modeling language D. framework-specific modeling language
Lincoln Company engaged in this transaction: Converted loans payable to stock. Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows
A) Financing activities section. B) Schedule of noncash investing and financing transactions. C) Investing activities section. D) Does not represent a cash flow.
½ of the respondents to the questionnaire are planning to attend college but the high costs may delay they're decisions
What will be an ideal response?
If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them
Indicate whether the statement is true or false