Question
please read text and answer the questions: Interest-rate forecasts from Federal Reserve officials sparked a mixed reaction from U.S. bond markets Wednesday, suggesting that investors
Interest-rate forecasts from Federal Reserve officials sparked a mixed reaction from U.S. bond markets Wednesday, suggesting that investors still have questions on how much the central bank will actually tighten monetary policy.
Selling in short-term Treasuries indicated that investors were once again lifting their expectations for how high interest rates could rise this year. Initial selling in longer-term bonds quickly fizzled, however, in a sign that investors thought that a fast pace of interest-rate increases over the next several months could lead to fewer increases later.
Investors and economists pay close attention to Treasury yields because they set a floor on borrowing costs across the economy and are an important input in financial models that investors use to value stocks and other assets.
From Selling in short-term Treasuries indicated that investors were once again lifting their expectations for how high interest rates could rise this year,
a. current yields of the short-term Treasuries are likely to increase:
True [ ], False [ ]
b. yield curve of the short-term Treasuries are moving upwards:
True [ ], False [ ]
From Treasury yields set a floor on borrowing costs across the economy and are an important input in financial models that investors use to value stocks and other assets.
a. higher Treasury yields help increase the value of stocks: True [ ], False [ ]
b. Dividend Discount Mode is not affected by the yields: True [ ], False [ ]
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