( measures the change in slope of the price-yield curve around interest rate level R convexity modified duration duration immunization ) is a time draft payable to a seller of goods with payment guaranteed by a bank. TIPS Commercial Papers Banker's Acceptances Repurchase Agreements Negotiable Certificates of Deposits STRIPS are General Business Bonds. used to immunize against interest rate risk Revenue bonds. O securities used for mortgage. inflation-indexed bonds Which one of the following is NOT one of the tools of the Federal Reserves? Change (or set) the discount rate to banks c.change or set the reserve requirement ratios Open market operations Issuing Treasury Bonds to investors The term is referred to as the financial market with the maturity date shorter than one year is money market future market primary market forward market secondary market estion 22 Unbiased Expectations Theory means Long-term interest rates are geometric averages of current and expected future short-term interest rates Investors and borrowers deviate from their preferred maturity segment only when adequately compensated to do so Irving Fisher first postulated that interest rates contain a premium for expected inflation. Interest rates are determined by distinct supply and demand conditions within many maturity segments Long-term interest rates are geometric averages of current and expected future short-term interest rates plus liquidity risk prem Moving to another question will save this response