Question

please answer within the hour

true and false

11.) A yield curve shows the relationship between the level of interest rates and the value of the financial asset.

12.A zero coupon bond, such as a U.S. Savings Bond, does not pay interest to the bond owner.

13.An investor in a U.S. common stock requires a higher return than a investor in a preferred stock for the same company. However, bond holders tend to earn higher returns in the long run due to the capital gains yield.

Answer 1

1.
False a yield curve shows the realtionship between the level of interest rates and maturity

2.
True

3.
False..bondholders earn lower returns