Which of the following statements is CORRECT? a. The yield on a 3-year Treasury

Question

Which of the following statements is CORRECT?
a. The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond.

b. If inflation is expected to increase, then the yield on a 2-year bond should exceed that on a 3-year bond.

c. The real risk-free rate should increase if people expect inflation to increase.

d. The yield on a 3-year corporate bond should always exceed the yield on a 2-year corporate bond.

e. The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond.

Explanation / Answer

Ans "e. The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond." is the correct one.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.