Holding Other Factors Constant, the Interest-Rate Risk of a Coupon

question 50

Multiple Choice

Holding other factors constant, the interest-rate risk of a coupon bond is lower when the bond's

• A)term to maturity is lower.
• B)coupon rate is higher.
• C)yield to maturity is lower.
• D)term to maturity is lower and coupon rate is higher.

---

Definitions:

Pruning Process

The process of synapse elimination that occurs between early childhood and the onset of puberty in mammalian brains, helping to enhance the efficiency of neuronal transmissions.

Stranger Anxiety

A form of distress that children experience when exposed to people unfamiliar to them, typically appearing around 6 months of age and peaking in infancy.

Brain Plasticity

The brain's ability to change and adapt as a result of experience by reorganizing its structure, functions, or connections.

Identity

The sense of self, encompassing personal, social, and cultural identities and how these are expressed and perceived.