If the Yield Curve Is Normal , What Is the Interest

question 12

Multiple Choice

If the yield curve is normal , what is the interest rate on a 20-year Treasury bond, compared to the interest rate on a 5-year Treasury bond?

• A)The interest rate on the 20-year bond will be more than the interest rate on the 5-year bond.
• B)The interest rate on the 5-year bond will be more than the interest rate on the 20-year bond.
• C)The interest rates of the two bonds will be equal.
• D)It is impossible to tell without knowing the relative risks of the bonds.

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Definitions:

British North American Act

A 19th century act of the Parliament of the United Kingdom that established a federation and a federal system of government for Canada.

Wildlife

Animals, plants, and other organisms living in their natural habitats undomesticated or unaffected by human activity, important for biodiversity and ecosystems.

Canada

Canada is a country located in the northern part of North America, known for its vast landscapes, multicultural diversity, and strong economy.

Species At Risk

Species that are in danger of extinction or significant decline, requiring protection and conservation efforts to ensure their survival.