Answer:
c. The maturity risk premium is zero.
Explanation:
Pure expectation theory states that the forward rate will represent expected future rate. Term structure is said to be a reflection of what the market expects future short term rates to be.
As future rates are expected to be the same as spot rates for that date, the theory is only applicable when there is no risk premium. That is the maturity risk premium is zero.
You are choosing whether to purchase a bond or stock. if you purchase the bond, you are likely to receive a lower return in exchange for a lower level of risk.
Bonds is a term or entity in the financial world to describe a form of fixed-income security that has its terms stipulated in an indenture or legal contract. On the other medium of exchange is an entity used in a transaction to exchange goods or services. In modern times, the medium of exchange is currency or money.
Stocks and bonds represent two different ways for an entity to raise money to expand their operations. Stocks are simply shares of individual companies but when an entity issues a bond, it is actually issuing debt with the agreement to pay interest for the use of the money. A stock makes you an owner of a business while a bond is just a loan to a business or a person.
Learn more about bond:
brainly.com/question/9817093
#SPJ4
Rodriguez compare his own attitudes towards reading to his parents' attitudes toward reading that they are not as intelligent as his teachers.
Paralleling the Rodriguez's education were the increasing contrary feelings Rodriguez was developing toward his parents. While he did not mean to be hurtful and rude towards them, he found that he was becoming angry when they did not seem to be with the same capabilities as his teachers have . Moreover as a student, Rodriguez looked toward his teachers, and not his parents, as the role models for him.
In this way he compared his own attitude as a scholarship boy with his parents.
To know more about Rodriguez here:
brainly.com/question/24393400
#SPJ4
Answer: The Balkan Peninsula is the home of a wide variety of ethnic groups.
Explanation:
The map in question shows the various ethnic groups in the Balkan Peninsula such as the Serbians, Albanians, Croats and Romanians and their location in the area. The Peninsula can therefore be said to have a variety of ethnic groups.
These groups have seen their fair share of conflict from the time they were under the Ottoman empire to the dissolution of the Yugoslav state that saw a deadly civil war and allegations of ethnic cleansing.
