Which of the Following Statements Is CORRECT

question 38

Multiple Choice

Which of the following statements is CORRECT?

• A) The yield on a 3-year Treasury bond cannot exceed the yield on a 10-year Treasury bond.
• B) The real risk-free rate is higher for corporate than for Treasury bonds.
• C) Most evidence suggests that the maturity risk premium is zero.
• D) Liquidity premiums are higher for Treasury than for corporate bonds.
• E) The pure expectations theory states that the maturity risk premium for long-term Treasury bonds is zero and that differences in interest rates across different Treasury maturities are driven by expectations about future interest rates.

Grasp the concept of sustainability and its application within the finance and corporate sectors for the betterment of future generations.

Comprehend the nature and sources of ethical dilemmas in business.

Identify and explain different perspectives on ethical behavior in business contexts.

Recognize the ethical issues companies face when operating globally and form an opinion on how these challenges can be addressed.