Consider the Impact of Inflation Risk on the Term Structure

question 4

True/False

Consider the impact of inflation risk on the term structure of interest rates. If investors become more wary of inflation, one would expect to observe a steeper, more upwards sloping, term structure of interest rates.

---

Definitions:

Relevant Columns

Important or pertinent columns in a database or spreadsheet that are significant to a particular analysis or task.

Positive Land Rent

The income received by landowners for the use of their land, typically due to the land's desirable location or fertility, which generates a return above the minimum needed to bring the land into production.

Values

The importance or worth that people attach to different things, ranging from material goods to principles and ethical standards.

Acres

A measurement unit used primarily in the United States, equal to 43,560 square feet, often used to describe the size of land.