Market Interest Rates Have Risen Substantially in the Five Years

question 32

Multiple Choice

Market interest rates have risen substantially in the five years since an investor purchased Treasury bonds that were offering a 7 percent return.If the investor sells now she is likely to receive:

• A)greater than a 7 percent total return.
• B)less than a 7 percent total return.
• C)a 7 percent total rate of return.
• D)a 7 percent nominal return but less than a 7 percent real return.

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Definitions:

Fibula

An ancient brooch or pin, typically used in Greek and Roman dress as a fastener or decorative item.

Tinia

The chief god of the Etruscan pantheon, equivalent to the Roman Jupiter and Greek Zeus, known as the god of sky and thunder.

Etruscan God

A deity worshiped in the ancient Etruscan civilization, which flourished in what is now Italy before the Roman Empire.

Archaeologists

Scientists who study past human cultures through the examination of physical remains, artifacts, and structures.