Multiple Choice Question

What does historical data suggest about the nature of short$-$term and long$-$term interest rates?

Multiple choice question.

Short$-$term rates are equal to the long$-$term rates.

Sometimes short$-$term rates are higher and sometimes long$-$term rates are higher.

Short$-$term rates are always higher than long$-$term rates.

Long$-$term rates are always higher than short$-$term rates.

difference between the coupon rate and the market rate

issuer's profit

dealer's profit

bondholder's profit