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Author Question: The rates on Treasury bills in the United States have been lower on average since the year 2000 than ... (Read 48 times)

mia

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on: Jul 10, 2018
The rates on Treasury bills in the United States have been lower on average since the year 2000 than in the 50 years from 1950-1999.
 
  Indicate whether the statement is true or false.

Question 2

Which of the four interest rate components had the smallest average percentage in the period from 1950-1999?
 
  A) Maturity premium
  B) Real rate
  C) Inflation premium
  D) Default premium


Ahernandez18

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE
Explanation: 1.73 vs 5.23

Answer to Question 2

Answer: D
Explanation: D) From 1950 to 1999, inflation averaged 4.05, the real rate averaged 1.18, the maturity premium averaged 1.28 (for twenty-year maturity differences), and the default premium averaged 0.49 (for AAA over government bonds).


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mia

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Reply #2 on: Jul 10, 2018
Thank you :)


Ahernandez18

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Reply #3 on: Jul 10, 2018
Happy to help you


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