34. Thirty-year Treasury bonds typically have a higher yield to maturity than two-year Treasury bonds due to a. default risk b. government deficits c. interest rate risk d. the cost of issuing long-term Treasury bonds ro ic different from the oun ions thooru 25 The liquiditu promium thoors of the form

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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34. Thirty-year Treasury bonds typically have a higher yield to maturity than two-year Treasury
bonds due to
a. default risk
b. government deficits
c. interest rate risk
d.
the cost of issuing long-term Treasury bonds
35. The liquidity premium theory of the term structure is different from the expectations theory
of the term structure because it includes
a. a risk premium
b.
default risk
c. a portfolio of AAA and BBB bond yields
d.
differences between the yields on AAA bonds and BBB bonds
Transcribed Image Text:34. Thirty-year Treasury bonds typically have a higher yield to maturity than two-year Treasury bonds due to a. default risk b. government deficits c. interest rate risk d. the cost of issuing long-term Treasury bonds 35. The liquidity premium theory of the term structure is different from the expectations theory of the term structure because it includes a. a risk premium b. default risk c. a portfolio of AAA and BBB bond yields d. differences between the yields on AAA bonds and BBB bonds
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