Yields on Long Term Bonds Are,in Principle,equal to

question 15

Multiple Choice

Yields on long term bonds are,in principle,equal to

• A) an average of current and expected future money market rates
• B) rates of return on stock issued by the same companies
• C) the fed funds rate
• D) the difference between the bond prices and par values, expressed as a percentage of current prices
• E) the rate of inflation expected in the economy

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Definitions:

Major Vein

A large blood vessel that carries blood towards the heart from various parts of the body, essential for the circulatory system.

Legs

Limbs on the lower part of the body, enabling movement and support of an individual's weight.

Aortic Semilunar

Relating to the semilunar valve located between the left ventricle of the heart and the aorta, regulating blood flow.

Aorta

The largest artery in the body, carrying oxygen-rich blood from the heart to various parts of the body.