“The yield curve will be downward sloping if the market believes that future short-term interest rates will be less than current short-term interest rate.” This statement about the term structure of interest rates is most consistent with the:

Related MCQs

• A negatively sloped yield curve suggests that
• If the market is _______, the period after a favorable (unfavorable) event would not generate returns beyond (less than) what is suggested by an equilibrium model such as CAPM
• If coupon rate is equal to going rate of interest then bond will be sold
• The credit risk of future is -------- than that of forwards:
• The credit risk of future is __________ than that of forwards:
• This is the level is the level that the technical analyst believes a stock price will not fall below.
• The variability in a security’s return resulting from changes in the level of interest rates is referred to as;
• If interest rates rise, the price of preferred stock
• An investor who expects increasing interest rates should purchase a bond that has a _____ coupon and a _____term to maturity.
• Lara wants to buy a bond and hold it until it matures. Which of the following must occur if Lara is to realize a holding period return equal to the bond’s yield to maturity?