If You Expected Interest Rates to Fall,you Would Prefer to Own

question 62

Multiple Choice

If you expected interest rates to fall,you would prefer to own bonds with

• A) short maturities and low coupons.
• B) long maturities and high coupons .
• C) long maturities and low coupons.
• D) short maturities and high coupons.
• E) none of the above.

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Definitions:

Personality Change

Alterations in an individual's personality traits, behaviors, or patterns, often influenced by experiences, development, or psychological interventions.

Neurotic

A term describing individuals prone to emotional instability, anxiety, or other psychological stressors, often with an implication of an underlying personality trait.

Young Adulthood

A stage of human development that typically covers the period from the late teens through the twenties, during which individuals navigate the transition from adolescence to adulthood.

Old Age

a late stage in the human life cycle characterized by the decline in physical and sometimes cognitive function.