Question 14 Not yet answered Consider the following two statements about the term structure 1. According to the liquidity premium theory, in the normal state of the economy, the longer-term interest rates lie above short-term interest rates. II. According to the expectations theory, an upward sloping term structure means that future spot rates are expected to be below today's spot rates. Marked out of 1.00 Flag question O a. Both statements are correct O b. Both statements are false O c. Only statement Il is correct O d. Only statement I is correct Question 13 Consider the following statements: Not yet answered 1. The duration is a measure for bond interest rate risk II. The CAPM cannot be used to estimate expected returns for bonds Marked out of 1.00 Flag question O a. Both statements are correct O b. Only statement II correct O c. Both statements are false O d. Only statement I is correct