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Which of the following is/are correct regarding interest rates? Pick all the correct ones. Bonds with greater default risk typically trade at lower yield-to-maturities. An
Which of the following is/are correct regarding interest rates? Pick all the correct ones.
Bonds with greater default risk typically trade at lower yield-to-maturities. | ||
An inverted yield curve serves as a negative indicator for the future state of the economy. | ||
Zero-coupon bonds are less sensitive to interest rate changes compared to coupon bonds with the same time to maturity. | ||
Borrowers preference for long duration and lenders preference for short duration causes the term premium to be positive. | ||
The yield curve is usually flat. |
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