Need Detailed Explanation

11. In comparing the yield to maturity on a Treasury bill with the yield on a discount ba eld to maturity rises whenever the yield on a discount basis falls Owill always be greater than the yield on a discount basis will always be equal to the yield on a discount basis, provided the holding period is the same as the number of y years to maturity will always be less than the yield on a discount basis 12. Because savers are generally risk averse yields incorporate an extra premium for bearing default risk the long-run return on corporate bonds is greater than the long-run return on corporate stocks they prefer higher returns to lower returns, holding default risk constant they are more concerned about expected returns than about the variability of those returns 13. As wealth increases in the economy, savers are willing to buy more bonds at any given price buy fewer bonds at any given price O lend less at any given interest rate hold more cash relative to their holdings of bonds 14. Monetary policy refers to the government's decisions on how much money to collect in taxes O decisions on how much money to spend plans for retiring the national debt management of the money supply 15. The assumption of asymmetric information means that lenders know more than borrowers O borrowers and lenders have the same information borrowers know more than lenders O borrowers and lenders have perfect information