One of the Basic Relationships in Interest Rate Theory Is

question 64

Multiple Choice

One of the basic relationships in interest rate theory is that, other things held constant, for a given change in the required rate of return, the the time to maturity, the the change in price.

• A) longer; smaller.
• B) shorter; larger.
• C) longer; greater.
• D) shorter; smaller.
• E) Answers c and d are correct.

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