9. In the 1990s this agency has acted like an international lender of last resort to cope with financial instability.

Stockholders
are residual claimants, meaning that they

An
inverted yield curve predicts that short-term
interest rates

A
________ yield curve predicts a future increase in inflation.

According
to the segmented markets theory of the term structure

If
the expected path of one-year
interest rates over the next five years is 4 percent, 5 percent, 7  


percent,
8 percent, and 6 percent, then the expectations theory predicts that
todayʹs
interest rate  


on
the five-year
bond is

Typically,
yield curves are

Bonds
with relatively low risk of default are called ________ securities
and have a rating of Baa  


(or
BBB) and above; bonds with ratings below Baa (or BBB) have a higher
default risk and are  


called
________.

)
Which of the following statements are true?

Which
of the following statements are true?

An
increase in default risk on corporate bonds ________ the demand for
these bonds, but  


________
the demand for default-free
bonds, everything else held constant.