When Interest Rates Decline, the Duration of a 10-Year Bond

question 43

Multiple Choice

When interest rates decline, the duration of a 10-year bond selling at a premium

• A)increases.
• B)decreases.
• C)remains the same.
• D)increases at first, then declines.

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Definitions:

Kansei Engineering

A product development methodology that incorporates consumer emotions, needs, and preferences into the design process to better meet user expectations.

Sensory Mechanisms

The physiological processes by which sensory organs and the nervous system receive and interpret stimuli from the environment.

Visual Cues

Elements in the environment or in communications that provide information or directional signals through sight.

Consumption

The use of goods and services by households, which involves the selection, purchase, use, maintenance, and disposal of products.