The Highest Duration and Maximum Price Sensitivity Relative to Years

question 41

Multiple Choice

The highest duration and maximum price sensitivity relative to years to maturity are produced by:

• A)a coupon rate equal to the market rate.
• B)a low coupon rate.
• C)a zero-coupon.
• D)None of the above

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Definitions:

Cultural Movement

A change in the way a number of different disciplines approach their work, reflecting a new societal emphasis or preference.

Court-Packing

A strategy to manipulate the composition and decisions of a judiciary body, especially the Supreme Court, by increasing the number of judges to obtain favorable rulings.

Constitutional Protections

The safeguards guaranteed by a constitution that protect the rights and freedoms of individuals and groups from infringement by the government.