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Assuming the pure expectations theory is correct, which of the following statements is CORRECT? Group of answer choices Reinvestment rate risk is higher on long
Assuming the pure expectations theory is correct, which of the following statements is CORRECT?
Group of answer choices
Reinvestment rate risk is higher on longterm bonds, and interest rate price risk is higher on shortterm bonds.
If year Treasury bond rates exceed year rates, then the market must expect interest rates to rise.
If year rates are and year rates are then the market expects year rates to be in one year.
Interest rate price risk and reinvestment rate risk are relevant to investors in corporate bonds, but these concepts do not apply to Treasury bonds.
If both year and year Treasury rates are then year rates must also be
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