Q1. An inverted yield curve always predicts a recession, which makes it a very reliable signal of future economic distress!   True/False   Q2. As pointed out in the lecture, the shape and magnitude of yields in the treasury yield curve has been remarkably consistent going back to 1989.   True/False   Q3. My favorite term structure theory is “expectations,” for obvious reasons.   True/False

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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Q1. An inverted yield curve always predicts a recession, which makes it a very reliable signal of future economic distress!

 

True/False

 

Q2. As pointed out in the lecture, the shape and magnitude of yields in the treasury yield curve has been remarkably consistent going back to 1989.

 

True/False

 

Q3. My favorite term structure theory is “expectations,” for obvious reasons.

 

True/False

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