Business, 28.02.2020 01:47 eweqwoewoji
Which one of the following statements is false concerning the term structure of interest rates?
A. Expectations of lower inflation rates in the future tend to lower the slope of the term structure of interest rates.
B. The term structure of interest rates includes both an inflation premium and an interest rate risk premium.
C. The term structure of interest rates and the time to maturity are always directly related.
D. The real rate of return has minimal, if any, affect on the slope of the term structure of interest rates.
E. The interest rate risk premium increases as the time to maturity increases.
Answers: 3
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Which one of the following statements is false concerning the term structure of interest rates?
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