Which of the Following Statements Is TRUE

question 20

Multiple Choice

Which of the following statements is TRUE?

• A)Prices of bonds with lower durations are more sensitive to interest rate changes.
• B)If a bond's yield to maturity exceeds its coupon rate,the bond trades at a premium.
• C)Bonds with higher coupon rates are more sensitive to interest rate changes.
• D)If a bond's yield to maturity is less than its coupon rate,the bond trades at a premium.

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Definitions:

World Bank

A nongovernmental organization that works exclusively with the poorest nations in the international community to help them secure loans.

IMF

The International Monetary Fund, an organization aiming to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment, and reduce poverty around the world.

Sustainable Economic Growth

Economic development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs, typically focusing on environmental, social, and economic balance.

Just War Theory

A theory for determining when a war can be considered legally and morally correct.