Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A) According to the unbiased expectations theory, the return for holding a two-year bond to maturity is equal to the nominal rate divided by the real interest rate.
• B) The rate on a 10-year Corporate bond can never be less than the rate on a 10-year Treasury.
• C) We usually observe the inverted yield curve.
• D) The rate on a three-year Treasury can never be less than the rate on a 15-year Treasury.