17. Everything else held constant, if the tax-exempt status of municipal bonds were eliminated, then A) the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds. B) the interest rate on municipal bonds would equal the rate on Treasury bonds C) the interest rate on municipal bonds would exceed the rate on Treasury bonds. D) the interest rates on municipal, Treasury, and corporate bonds would all increase 18) The term structure of interest rates is A) the relationship among interest rates of different bonds with the same maturity B) the structure of how interest rates move over time C) the relationship among the term to maturity of different bonds. D) the relationship among interest rates on bonds with different maturities. 19) A plot of the interest rates on default-free govermment bonds with different terms to A) a risk-structure curve. B) a default-free curve. C) a yield curve. D) an interest-rate curve. 20) When yield curves are steeply upward sloping A) long-term interest rates are above short-term interest rates. B) short-term interest rates are above long-term interest rates. C) short-term interest rates are about the same as long-term interest rates. D) medium-term interest rates are above both short-term and long-term interest rates. 21) If the expected path of one-year interest rates over the next five years is 4 percent, 5 percent, 7 percent, 8 percent, and 6 percent, then the expectations theory predicts that today's interest rate on the five-year bond is A) 4 percent. B) 5 percent C) 6 percent D) 7 percent. 22) A key assumption in the segmented markets theory is that bonds of different maturities A) are not substitutes at all. B) are perfect substitutes. C) are substitutes only if the investor is given a premium incentive