Which of the Following Is NOT True of the Habitat

question 86

Multiple Choice

Which of the following is NOT true of the habitat term premium?

• A)It is zero under the expectations theory.
• B)It is infinite under the segmented markets theory.
• C)It increases as a bond's maturity increases.
• D)It is zero for thirty-year bonds.

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Definitions:

Operating Activities

Transactions and events that pertain to the primary business operations, impacting the net income and involving cash flows related to operating expenses and revenues.

Indirect Method

A method for preparing cash flow statements where net income is adjusted for changes in balance sheet items to compute cash from operating activities.

Operating Activities

Transactions related to the primary operations of a business, such as sales revenue and expenses, that affect the cash flow.

Current Assets

Assets that a company expects to convert to cash, sell, or consume within one year or its operating cycle, whichever is longer.