4. During lecture, we watched a video (also posted to D2L) about the yield curve for US Treasuries over time. Which of the following statements (I-IV) are TRUE: L When longer maturity treasuries are yielding more than shorter maturity treasuries, the stock market has Il. When shorter maturity treasuries are yielding more than longer maturity treasuries, it would be a good Il. The VIX can be used to measure investors' fears about the equity market (i.e. the S&P 500 or SPX) while V. When longer maturity treasuries are yielding more than shorter maturity treasuries the yield curve is soon after crashed and the economy has headed into a recession idea to sell some stocks in your retirement account and convert them into cash the TED can be used to measure investor's fears about the bond market considered to be inverted A. I B. E. Il, Ill, IV 5. Which of the following bond features would definitely cause a bond's current price to increase: A. A maturity date of 30 years instead of 10 years 8. Semi-annual coupon payments instead of an annual coupon payment An annual coupon rate of 2.5% instead of an annual coupon rate of 5.0% D, A yield to maturity of 8.0% instead of a yield to maturity of 6.0% E. A face value of $100 instead of a face value of $1000 6. Yesterday, a bond's YTM is 3.0%. Today, the same bond has YTM of 4.0%. It would be betterfor route have purchased the bond yesterday before YTM went upby 10% today. Evaluate the underlined words in italics. True or False? A. True B. False 7. A corporate bond has a face value of $1000, matures in exactly 5.0 years, and pays a 6.0% annual coupon with interest payments at the end of every six months. If this bond currently trades at $950.00, the bond's YTM is closest to: A. 4.12% B. 4.13% C 6.69 % D. 7.21% E. 7.23%