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Which of the following is not one of the four fundamental factors that affect the cost of money? production opportunities time preferences for consumption risk liquidity inflation Interest rates on 1-year, 2-year, and 3-year Treasury bills are 5%, 6%, and 7% respectively. Assume the pure expectations theory holds and that the market is in equilibrium. Which of the following statements is most correct? The maturity risk premium is positive. Interest rates are expected to rise over the next two years. The market expects one-year rates to be 5.5% one year from today. Answers a,b and c are all correct. Only answers b and c are correct. Stock owned by the organizers of the firm who have sole voting rights but generally pays out restricted dividends for a specified number of years is preferred stock. common equity. convertible equity, founders' shares. retained earnings. Other things held constant, if a bond indenture contains a call provision, the yield to exist without such a call provision will generally be the YTM with it. Higher than Lower than The same as Either higher or lower, depending on the level of call premium, than Unrelated to Bonds that can be exchanged for shares of equity at the owner's discretion are called Debenture. Indenture. Callable bond Convertible bond. Putable bond