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Assume you have a normal yield curve. How should the interest rate (yield to maturity) on a 20 year Treasury coupon bond compare to that
Assume you have a normal yield curve. How should the interest rate (yield to maturity) on a 20 year Treasury coupon bond compare to that on a 1 year T-bill? O The interest rate on a 20 year bond will be the same as a 1 year T-bill. The interest rate on a 20 year bond will be less than that on a 1 year T-bill. There is not enough information to make a decision. O None of these selections are correct O The interest rate on a 20 year bond will be higher than that on a 1-year bill because of maturity risk premium
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