All Else Equal,when Interest Rates ________,The Duration of a Coupon

question 64

Multiple Choice

All else equal,when interest rates ________,the duration of a coupon bond ________.

• A)rise;falls
• B)rise;increases
• C)falls;falls
• D)falls;does not change

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Definitions:

Principal

A person or entity who authorizes an agent to act on their behalf in dealings with third parties.

Constructive Trust

A legal remedy imposed by a court to address unjust enrichment or fraud, requiring the person holding the assets to transfer them to the intended party.

Lakeside Property

Real estate located adjacent to or near a lake, often highly valued for its view, recreational opportunities, and environmental quality.

Possession

The actual holding or control of something, such as property or goods, often implying ownership or a right to control.