The term structure of interest rates is the relationship between ...

[luminitza]

The term structure of interest rates is the relationship between ________.
 
  A) the present value of principal and coupon rate of the bonds
  B) the general expectation of inflation and nominal rate of return for bonds
  C) the general expectation of inflation and real rate of return for bonds
  D) the maturity and rate of return for bonds with similar level of risk

Question 2

Due to inflationary effects, inventory costs and depreciation write-offs can differ from their true values, thereby distorting profits.
 
  Indicate whether the statement is true or false

[izzat]

Answer to Question 1

D

Answer to Question 2

TRUE

[luminitza]

Excellent

[dreamfighter72]

TYSM