Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain about those two questions answer for why these answers are correct answer of each questions. 1. Which of the following concepts are not

Please explain about those two questions answer for why these answers are correct answer of each questions.
1. Which of the following concepts are not related to the interest rate risk premium of bond?
a. Credit rating (It is an answer)
b. Maturity
c. Coupon rate
d. Price
2. Suppose the 1-year Treasury bill yield is 1%, 2-year Treasury bill yield is also 1%. Based on the pure expectations hypothesis and the maturity risk premium, what do people expect about the next year's 1-year Tresury bill yields?
a. Lower than this year (correct answer)
b. Same as this year
c. Higher than this year
please explain to me why these answers are correct answer for each question

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Broadcasting Finance In Transition

Authors: Jay G. Blumler, T. J. Nossiter

1st Edition

ISBN: 0195050894, 978-0195050899

More Books

Students also viewed these Finance questions