32 Questions follow Treasury Bills/Notes/Bonds pay lower interest rates compared to AA corpor time period because: 1. a. Maturity risk premium differences b. Liquidity risk premium differences c. Inflation rate differences d. Default risk premium differences 2. A downward sloping Yield curve indicates that interest rates will be: a. Staying the same b. Declining c. Rising d. None of the above 3. A higher liquidity risk premium indicates that: Interest rates are expected to rise in the future Interest rates are expected to decline in the future The asset is expected to suffer a loss if sold The asset is expected to benefit and sell for more money a. b. c. d. 4. A higher default premium would result is the loan rate charged to the borrowe a. The same b. Higher C. Lower d. None of the above 5. The monthly payment on a simple interest loan for $100,000 with a 6% intere a. $600 b. $500 C. $400 d. $300 6. A treasury bill pays interest as a. An Ordinary annuity b. An Annual due c. Depends a function of t d. Anlo