For Small Change in Interest Rates, Market Prices of Bonds

question 9

Multiple Choice

For small change in interest rates, market prices of bonds are inversely proportional to their

• A)equity.
• B)asset value.
• C)liability value.
• D)duration value.
• E)none of the options.

---

Definitions:

Toxin-Filled Capsule

A structure containing poisonous substances, often produced by microorganisms as a defense mechanism or to attack other cells.

Flatworm

A type of simple, soft-bodied invertebrate animal that is a member of the phylum Platyhelminthes, which includes planarians, flukes, and tapeworms.

Tapeworm

A parasitic flatworm that lives in the digestive tract of vertebrates as adults, often causing health issues such as weight loss or nutrient deficiencies.

Hookworm

A parasitic nematode that lives in the small intestine of its host, which can be humans, and causes anemia and malnutrition through blood loss.