1. 4. The _______ is/are a graphic depiction of the term structure of interest rates.

   a. yield curve

   b. supply and demand functions

   c. risk/return profile

   d. aggregate demand curve

2 points

Question 5

1. 5. All of the following are true EXCEPT

   a. interest income received by a corporation is taxed as ordinary income

   b. corporations pay taxes on all dividends received from other corporations no matter their share of ownership

   c. corporations may pay taxes on only 30% of the dividends received depending on their percentage of ownership

   d. a corporation cannot deduct from taxable income dividends they pay

2 points

Question 6

1. 6. Generally, an increase in risk will result in ______ required rate of return

   a. a lower

   b. a higher

   c. no change in the

   d. an undertermined