If Intermediate-Term, Default-Free, Pure Discount Bonds Have a Higher Rate

question 41

Multiple Choice

If intermediate-term, default-free, pure discount bonds have a higher rate of return than either the comparable shorter-term or longer-term bonds, the term structure of interest rates will be:

• A)upward sloping.
• B)flat.
• C)humped.
• D)downward sloping.
• E)double-humped.

---

Definitions:

Maladaptive Psychological

Pertaining to psychological behaviors or thoughts that are detrimental to an individual's ability to adapt to and cope with various life situations.

Abusive Early Relationships

Interpersonal relationships during formative years distinguished by maltreatment or violence, impacting an individual's psychological development and well-being.

Behavioral Choices

Decisions individuals make concerning their actions, which are guided by cognitive processes, environmental influences, and past experiences.

Habituation

The process by which an individual becomes accustomed to a stimulus through repeated exposure, leading to decreased response.