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The yield to maturity on a 1-year bond purchased for $980 with a maturity value of $1100 is: Question 1 options: a) 10.05% b) 13.50%

The yield to maturity on a 1-year bond purchased for $980 with a maturity value of $1100 is:

Question 1 options:

a)

10.05%

b)

13.50%

c)

12.24%

d)

14.23%

A flat term structure implies that investors expect future short-term interest rates to:

Question 2 options:

a)

decrease.

b)

increase.

c)

be the same as the current rate.

d)

none of the options given.

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