The analysis of the term structure of interest rates, incorporating a term premi

Question

The analysis of the term structure of interest rates, incorporating a term premium, assumes that? A.  there is no risk involved in the purchase and sale of long-term securities. B.  short-term and long-term securities offer the same rate of interest. C.  there is uncertainty about future interest rates. ? ? D.  ?investors are risk averse. The analysis of the term structure of interest rates, incorporating a term premium, assumes that? A.  there is no risk involved in the purchase and sale of long-term securities. B.  short-term and long-term securities offer the same rate of interest. C.  there is uncertainty about future interest rates. ? ? D.  ?investors are risk averse.

Explanation / Answer

B.  short-term and long-term securities offer the same rate of interest.

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