The Expected Yield on a 2 Year Security Is 7

question 22

Multiple Choice

The expected yield on a 2 year security is 7.8%.If the yield on a T-bill maturing in 1 year is 7.2%,what is the yield on a T-bill maturing in 2 years?

• A) 7.2%
• B) 9.8%
• C) 15%
• D) 7.8%

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Definitions:

Random Assignment

A research method used to assign participants to different groups in an experiment in a way that each participant has an equal chance of being placed in any group.

Independent Variable(s)

are the variables in an experiment that are manipulated to test their effect on dependent variables, allowing researchers to determine cause-and-effect relationships.

Internal Validity

The extent to which changes in the independent variable caused changes in the dependent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.