A Maturity Risk Premium at a Certain Point in Time

question 97

Multiple Choice

A maturity risk premium at a certain point in time may be expressed by comparing the interest rates on:

• A) a Treasury bill and a Treasury bond.
• B) a Treasury bill and a long-term corporate bond.
• C) a Treasury bill and the commercial paper rate.
• D) a risky security and a comparable maturity U.S. Treasury security.

---

Definitions:

Operant Conditioning

A learning method where behaviors are influenced by the consequences that follow them, like rewards or punishments.

Helplessness

A state of being unable to prevent or avoid negative situations, often leading to decreased motivation or depression.

Passivity

The trait of being inactive or submissive, often resulting in the absence of response or resistance.

Retardation of Learning

The slowing down or hindrance in the acquisition of knowledge, skills, or behaviors, often due to external or internal factors.