FIN 351 CHAPTER 12 QUIZ 11 TO 15

FIN 351 CHAPTER 12 QUIZ 11 TO 15
11. The reinvestment assumption would have no effect on yield if the bond is held to maturity.
12. Historically, interest rates have been coincident indicators in the economy.
13. Inflationary expectations have no effect on bond prices.
14. Inflationary expectations have their greatest impact on short-term rates.
15. The term structure of interest rates depicts the relationship between maturity and interest rates.

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