Which of the Following Statements Is Most Correct

question 107

Multiple Choice

Which of the following statements is most correct?

• A) All else equal, an increase in interest rates will have a greater effect on the prices of long-term bonds than it will on the prices of short-term bonds.
• B) All else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds.
• C) An increase in interest rates will have a greater effect on a zero coupon bond with 10 years maturity than it will have on a 9-year bond with a 10 percent annual coupon.
• D) All of the statements above are correct.
• E) Answers a and c are correct.

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Definitions:

Displaying Ethical Behavior

The practice of consistently demonstrating honesty, integrity, fairness, and respect in one's decisions and actions.

High-Mach Individuals

People with a high Machiavellianism trait, who tend to be manipulative, deceitful, and pragmatic in their strategies to achieve power and control.

Low-Mach Individuals

People characterized by lower levels of Machiavellianism, displaying sincerity, lower manipulation tendencies, and a more ethical stance in interpersonal relations.

Goal-directed Behavior

actions that are performed with a specific objective or goal in mind, showing purpose and direction.