Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)Prices of bonds with lower durations are more sensitive to interest rate changes.
• B)When a bond is trading at a discount,the price increase between coupons will exceed the drop when a coupon is paid,so the bond's price will rise and its discount will decline as time passes.
• C)Coupon bonds may trade at a discount,at a premium,or at par.
• D)The sensitivity of a bond's price to changes in interest rates is the bond's duration.

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Definitions:

Total Fertility Rate

The average number of children a woman would bear during her lifetime, given current birth rates.

Infant Mortality Rate

The number of deaths of infants under one year of age per 1,000 live births in a given year.

Replacement-Level Fertility

The average number of children that must be born to women of reproductive age in a population to replace the number of people dying, ensuring population stability.

Demography

The statistical study of populations, analyzing structure, distribution, and trends through births, deaths, migrations, and aging.