Which of the Following Bonds Would Have the Greatest Percentage

question 21

Multiple Choice

Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?

• A) 10-year,zero coupon bond.
• B) 20-year,10% coupon bond.
• C) 20-year,5% coupon bond.
• D) 1-year,10% coupon bond.
• E) 20-year,zero coupon bond.

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Definitions:

Gate-Control Theory

A theory that suggests pain is not merely a direct result of activation of pain fiber receptors, but is also subject to modulation by interneurons in the spinal cord that can 'gate' pain signals.

Large-Fiber Activity

Large-Fiber Activity refers to the actions or responses of large-diameter nerve fibers, which are typically involved in the transmission of touch and proprioceptive information.

Spinal Cord

The major column of nerve tissue that is connected to the brain and lies within the vertebral canal and from which the spinal nerves emerge.

Metal Belt Buckle

A device usually made of metal that fastens together the two ends of a belt or strap.