Question 1: If the yields on 2-year Treasury notes is 5.1% and on 10-year is 4.7%, the shape of the yield curve based on this data __________ a. has a positive slope b. is inverted c. is flat

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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Question 1: If the yields on 2-year Treasury notes is 5.1% and on 10-year is 4.7%, the shape of the yield curve based on this data __________

a. has a positive slope

b. is inverted

c. is flat

 

Question 2: Rising yields on Treasury notes hit tech stocks particularly hard, because those companies' future profits are worth ______ now ((the present value) relative to the risk--free returns from holding Treasury notes to maturity

a. more

b. the same

c. less

 

Question 3: Treasury issuance has jump recently because of _________

a. recession

b. growing federal budget deficit

c. inflation

 

Question 4: As new bonds issued at higher rates, the prices of older bonds _____

a. fall

b. stay the same

c. raise

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