Questio 29 History has shown that a recession is imminent if Not yet 40swered Points out of 10 Flag question Select one: a. the yield curve is downward sloping b. long term rates are higher than short term rates O investors prefer short term bonds over long term bonds d. the spread between the 10-year treasury rate and the 3-month treasury bill rate is positive Question 30 Not yet answered Based on the Pure Expectations Theory of interest rates, if the one year rate is 4%, and the one-year rate, one year from now, is expected to be 10%, the current two-year rate should be Points out of 1.0 Flag question Select one: a. 7.0 % b. 3.0% c. 6.0% Od. 14.0% You would usually expect nominal market yields of US treasury securities Question 33 Not yet answered Points out of 1.0 Flag question Select one: a. to be more than the yields of investment grade corporate securities o b . to be higher than the real interest rates for treasures c. when graphed as a yield curve to be above the yield curve for investment grade corporate securities d. to normally decline as maturities lengthen Question 34 Not yet answered If you pay $1000 today for a new $1000 face value two year bond with a 5% coupon rate, your rate of return, or yield to maturity is Points out of 1.0 Select one: O a. 5% P Flag question O b. more than 5% c. less than 5% O d. need more information to calculate