Which of the Following Statements Is Correct

question 55

Multiple Choice

Which of the following statements is correct?

• A) The durations of zero- coupon bonds and discount securities are always equal to their terms.
• B) The durations of zero- coupon bonds and discount securities are equal to their terms during a financial crisis.
• C) The durations of zero- coupon bonds and discount securities are not equal to their terms.
• D) The durations of zero- coupon bonds and discount securities are not always equal to their terms.

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Definitions:

Implicit Association Test

A psychological assessment designed to detect the strength of a person's automatic association between mental representations of objects in memory.

Cognitive Associations

The connections formed in the mind between ideas, feelings, or memories, influencing how thoughts and behaviors are organized.

Conscious Awareness

The state or quality of being aware of an external object or something within oneself, marked by perception and recognition of one's thoughts, feelings, and environment.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, and solving problems.