A Maturity Premium Is Offered on Long-Term Treasury Bonds Due

question 63

Multiple Choice

A maturity premium is offered on long-term Treasury bonds due to:

• A) the risk of changing interest rates.
• B) the risk of default.
• C) their unique risk.
• D) their systematic risk.

---

Definitions:

Cluster Sample

A sampling technique where the population is divided into groups, or clusters, and a sample of these clusters is selected to represent the population.

Simple Random Sample

A sample drawn in such a way that every element of the population has an equal chance of being selected.

Sampling Distribution

The layout of statistical probabilities derived from a random sample.

Sample Mean

The average value of a sample set of numbers, calculated by summing all the observations and dividing by the number of observations.