Which of the Following Statements Are True? I) Holding Other

question 1

Multiple Choice

Which of the following statements are true? I) Holding other things constant, the duration of a bond decreases with time to maturity.
II) Given time to maturity, the duration of a zero-coupon increases with yield to maturity.
III) .Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower.
IV) Duration is a better measure of price sensitivity to interest-rate changes than is time to maturity.

• A)I only
• B)I and II
• C)III only
• D)III and IV

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Definitions:

Orexin

A neurotransmitter involved in regulating wakefulness and appetite.

Hypothalamus

A region of the brain responsible for the production of many of the body's essential hormones, influencing bodily functions such as temperature regulation, thirst, hunger, sleep, and mood.

Excess Weight

The additional body weight that is above the recommended limits for optimal health, often resulting from accumulated fats in the body.

Appetite

The natural desire to satisfy a bodily need, especially for food, distinct from the physical sensation of hunger.