1.Complete the sentence below, and provide a reason for your choice. IE: choose one answer starting without "because" and one answer starting with "because."

Holders of long-term Treasury Bonds generally...

Group of answer choices - a)Because long-term Treasuries provide the safety of a stream of cash flows for a lifetime.

b)Because they are conservative investors.

c)Get a lower interest rate than holders of short-term Treasuries

d)Because the risk of Treasury Bonds increases with duration.

e)Like to balance these investments with short-term Treasury holdings

f)Demand a higher interest rate than holders of short-term Treasuries.

2.

If the real return of a CD is positive, this means that:

Group of answer choices

B) An investor in this CD will be able to buy more stuff when the contract matures than when it originated.

D) B and C

A) The inflation rate is low.

E) None of the listed answers

C) The CD is outpacing inflation.