A Bond Trader Observes the Following Information

question 78

Multiple Choice

A bond trader observes the following information:
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•The Treasury yield curve is downward sloping.
•Empirical data indicate that a positive maturity risk premium applies to both Treasury and corporate bonds.
•Empirical data also indicate that there is no liquidity premium for Treasury securities but that a positive liquidity premium is built into corporate bond yields.
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On the basis of this information,which of the following statements is most CORRECT?

• A)A 10-year corporate bond must have a higher yield than a 5-year Treasury bond.
• B)A 10-year Treasury bond must have a higher yield than a 10-year corporate bond.
• C)A 5-year corporate bond must have a higher yield than a 10-year Treasury bond.
• D)The corporate yield curve must be flat.
• E)Since the Treasury yield curve is downward sloping, the corporate yield curve must also be downward sloping.

Recognize the appropriate use of different types of wound dressings and their applications.

Implement effective wound cleansing techniques.

Identify the multidisciplinary approach to managing impaired skin integrity.

Understand the stages of wound healing and the nursing interventions required at each stage.

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Definitions:

Marginal Rates

Rates of tax or charges that apply to the next unit of income or consumption, often increasing with the amount subject to the rate.

MU/P

Marginal utility per unit of price; a calculation used to determine the additional satisfaction gained per unit of currency spent on different goods and services.

Convinced

Being fully persuaded or firmly believing in the truth or existence of something.

Rational Consumer

An individual who systematically pursues their self-interest by making decisions that maximize their utility and satisfaction.