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A one-year bond offers a 12.5% yield to maturity (YTM) and a two-year bond offers an 11% yield to maturity (YTM). Based on this information
A one-year bond offers a 12.5% yield to maturity (YTM) and a two-year bond offers an 11% yield to maturity (YTM). Based on this information which of the following is true?
Question 13 options:
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| a) | The term structure cannot be determined from this information. |
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| b) | The term structure is flat. |
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| c) | The term structure is upward sloping. |
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| d) | The term structure is downward sloping. |
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