If Bonds with Different Maturities Are Perfect Substitutes,then the ________

question 64

Multiple Choice

If bonds with different maturities are perfect substitutes,then the ________ on these bonds must be equal.

• A)expected return
• B)surprise return
• C)surplus return
• D)excess return

---

Definitions:

Predict

To make a reasonable inference about future events or outcomes based on current or past information.

Behavioral Trends

Patterns or tendencies in behavior that are observable across a group of individuals or over time.

Inconsistent

Displaying a lack of regularity or predictability in actions, thoughts, or outcomes, leading to variability in behavior or results.

Person-Situation Debate

A discussion in psychology regarding the relative influence of personality traits versus situational factors in determining individuals' behaviors.