Question 1 Answer saved Marked out of 1.00 P Flag question According to expectations theory, when investors expect short term interest rates to rise in the future, today's long-term rates will be --------- than current short-term rates, and the yield curve will be upward sloping. PEPPERODD a. higher O b. up and down C. stay the same d. lower Clear my choice Question 2 Answer saved Marked out of 1.00 P Flag question ---- Borrowers are willing to pay somewhat rates because long-term debt allows them to eliminate or reduce the risk of not being able to refinance short-term debts when they come due. O a. higher O b. lower O c. stay the same O d. lower or higher Question 3 Answer saved Marked out of 1.00 P Flag question An interest rate or a required rate of return represents a. the cost of money O b. the return O c. yield to maturity O d. yield Clear my choice Question 4 Answer saved Marked out of 1.00 P Flag question is the actual rate of interest charged by the supplier of funds and paid by demander. O a. The inflation rate b. The nominal rate of interest O c. risk premium O d. The real rate of interest Clear my choice