The Difference,or Spread,between Short-Term and Long-Term Bond Yields Is

question 33

Multiple Choice

The difference,or spread,between short-term and long-term bond yields is

• A) a strong empirical predictor of future short-term yields
• B) a weak predictor of future yields and a better signal of inflation
• C) inversely related to the difference in time to maturity
• D) used by forecasters to predict future long-term yields
• E) regulated by the government in most economies

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