The Z Value Associated with a Two-Sided 95% Confidence Interval

question 91

Multiple Choice

The z value associated with a two-sided 95% confidence interval is _______.

• A)1.28
• B)1.645
• C)1.96
• D)2.575
• E)2.33

Evaluate the impact of interest rate expectations on bond prices and yields.

Distinguish between on-the-run and off-the-run bonds and their yield implications.

Understand the concepts of reinvestment risk and yield to maturity calculations.

Interpret financial data to anticipate market movements and interest rate changes.

---

Definitions:

Profit-Seeking

The motivation or strategy of businesses and individuals to increase their financial gains or profits.

Property Rights

Legal rights to use, manage, and obtain benefits from a resource, property, or invention.

Market Organization

A method of organization in which private parties make their own plans and decisions with the guidance of unregulated market prices. The basic economic questions of consumption, production, and distribution are answered through these decentralized decisions.

Competitive Markets

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar but differentiated, leading to competition on price, quality, and innovation.