Which of the Following Statements Is NOT True

question 126

Multiple Choice

Which of the following statements is NOT true?

• A) Interest rates and bond prices move inversely with each other.
• B) Corporate bonds have no interest rate risk in the long run.
• C) Arbitrage keeps interest rates on equally risky assets the same.
• D) A longer term to maturity exposes a bond holder to greater interest rate risk.

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Definitions:

Specific Performance

Specific performance is a legal remedy in contract law where a court orders a party to perform their obligations under a contract, rather than providing a monetary award for breach of contract.

Valid Tender

An offer of payment meeting the legal requirements to extinguish a debt or obligation.

Madison Square Garden Corp., Ill. v. Carnera

A legal case that dealt with specific issues related to contracts or legal obligations; further context would be needed for a precise definition.

Negative Covenant

A promise in a contract that prohibits a party from engaging in certain activities.