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Which of the following statements is CORRECT? If the maturity risk premium (MRP) is greater than zero, the Treasury bond yield curve must be upward

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Which of the following statements is CORRECT? If the maturity risk premium (MRP) is greater than zero, the Treasury bond yield curve must be upward sloping. If the maturity risk premium (MRP) equals zero, the Treasury bond yield curve must the flat. If inflations is expected to increase in the future and the maturity risk premium (MRP) is greater than zero, the Treasury bond yield curve must be upward sloping. If the expectations theory holds, the Treasury bond yield curve will never be downward sloping. Because long-term bonds are riskier (ban short-term bonds, yields on long term Treasury bonds will always be higher than yields on short-term T-bonds. Which of the following order regarding priority of claims in liquidation is CORRECT? secured creditors form sales of secured assets wages taxes-unseen urged creditors- preferred stock-common stock. secured creditors form sales of secured assets wages-taxes unsecured creditors common stock- preferred stock. wages-taxes-unsecured creditors preferred stock-common stock-secured creditor form sales of secured assets common stock-secured creditors form sales of secured assets-wages-taxes-unsecured creditors-preferred stock, unsecured creditors-secured creditors form sales of secured assets-wages-taxes-preferred stock common stock. Crockett Corporation's 5-year bonds yield 6.85%, and 5-year T-bonds yield 4.75%. The real risk free rate is r* = 2.80%. the default risk premium for Crockets bonds DRP - 0.85%. Venus zero for T-bond, the liquidity premium on Crockett's bonds is LP = 1.25%, and the maturity risk premium for all bonds is found with the formula MRP -(1- 1)* 0 1% where t = number of year to maturity. What is the inflation premium (IP) on 5-year bonds? 1.40% 1.55% 1.71% 1.88% 2.06%

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