1. There are many factors that affect interest rates for companies and individuals that invest their money over time in hopes of enjoying a better bottom line than they would have before that investment. Which of the following would be a worry for companies and investors if they were going to invest in long term corporate securities?

a. Inflation Premium, Liquidity Premium, Default Risk Premium, Maturity Risk Premium

b. Liquidity Premium, Default Risk Premium, Maturity Risk Premium

c. Inflation Premium, Liquidity Premium, Default Risk Premium

d. none of the above

2. What type of yield curve is attractive to investors?

a. an upward sloping curve yields go up over time

b. a downward sloping curve yields go down over time

c. a flat curve yields do not change over time

d. none of the above