12. Mortgage payments are on a 15 year fixed rate mortgage than on a 30 year fixed rate mortgage, andis paid on a 15 year mortgage than on a 30 year mortgage, all things considered A) Lower, less interest B) Lower, less principal C) Higher, less interest D) Higher; more principal E) Higher; more interest 13. Consider a yield curve that has taken into consideration the expectations theory and is nitially upward sloping. Now assume that the liquidity premium theory holds. The yield curve you would expect to see would be a. more steeply downward sloping b. more upward sloping c. less steeply downward sloping d. flat e. Either e or d can happen 4. The yield curve a. relates rates for different maturities of assets b. is normally calculated using US Treasury securities c. may change shape over time d. should be calculated for securities in the same risk class e. all of the above are correct. The existence of each of the following bond terms will result in a lower required yield excepr a. conversion feature b. collateral sinking fund. call provision d