Posted: March 7th, 2017
Which of the following statements IS NOT true?
Which of the following statements IS NOT true?
Longer tern bond prices are more volatile than short term bond prices.
The maturity yields of long and short term bonds must converge in conditions of market equilibrium.
The real interest rate takes into account expectations of future inflation.
If real interst rates are low, fewer people will put their money into savings accounts.
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