3. Assume that the liquidity of corporate bonds improves a
little bit, relative to US Treasury bonds. Given this, we would
expect that the yield on US Treasury bonds will _____ and the yield
on corporate bonds will _____.
Group of answer choices
rise; rise
rise; fall
fall; rise
fall; fall
4. Analysts predict that short-term interest rates over the next
4 years will be as follows: 5%, 8.5%, 12%, and 1%, respectively.
According to expectations theory, the yield on...