Sophia Finance Challenges 2 Answers

    If the interest rates for long-term investments are lower than those for short-term investments, how would the yield curve be described? a.) Flat b.) Steep c.) Inverted d.) Normal     If the interest rates rise as the length of the borrowing period increases, how would the yield curve be described? a.) Normal b.) Flat c.) Steep d.) Inverted     If interest rates for all borrowing periods are similar, how would the yield curve be described? a.) Steep b.) Normal c.) Inverted d.) Flat     Who is responsible for holding the legal contract for a bond, or bond indenture? a.)The borrower b.)The bondholder c.)Government officials d.)A trustee, like a financial institution     Which of the following best describes a bond? a.)A type of investment in which the investor purchases equity in the entity issuing the bond b.)A debt instrument that can only be sold on the primary market c.)A form of loan that gives an investor a creditor stake in the entity issuing the bond d.)A debt security with a fixed term and a variable interest rate  Which of the following impacts a bond's interest rate, or coupon rate? a.) The bond's face value  b.) The bond's market value  c.) The bond's credit rating