INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 154

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-If you are sued,the liability portion of your property insurance [must | has no obligation to] defend you.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to changes in interest rates, often used to assess risk.

Interest-Rate Change

A fluctuation in the cost of borrowing or the return on savings, which can significantly impact financial markets and economic conditions.

Term to Maturity

The duration of time until the final repayment date of a loan, bond, or other financial instrument.

Coupon Rate

The coupon rate is the interest rate that the issuer of a bond or other fixed-income security promises to pay to the holder annually, expressed as a percentage of the par value.