The Current Market Interest Rate for One Year Maturity Bond

question 51

Multiple Choice

The current market interest rate for one year maturity bond is 10%.The forward rate for a one year investment starting in one year from now is 8%.The forward rate for a one year investment starting in two year from now is 12%.According to the expectations theory of term structure,the shape of the yield curve between 1 year maturity and 3year maturity is:

• A)descending.
• B)ascending.
• C)ascending then descending.
• D)descending then ascending.

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Definitions:

Coconut Oil

An edible oil extracted from the kernel or meat of mature coconuts, touted for its health benefits and used in cooking, skin care, and hair care.

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The condition of an individual's health as influenced by the intake and utilization of nutrients.

Prealbumin

A protein found in the blood that is used as a marker for nutritional status and to evaluate the effectiveness of nutrition interventions.

Albumin

A protein found in blood plasma that helps maintain osmotic pressure and transport substances throughout the body.