If Yields on Treasury Bonds Rise

question 90

Multiple Choice

If yields on Treasury bonds rise

• A) the value of the corresponding bonds will rise and the value of interest rate options will fall.
• B) the value of the corresponding bonds and the value of interest rate options will both fall.
• C) the value of the corresponding bonds will fall and the value of interest rate options will rise.
• D) the value of the corresponding bonds and the value of interest rate options will both rise.

---

Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean of the set.

Mean Purchase

The average value or amount of purchases made over a specific period of time.

Probability

The likelihood or chance of an event occurring.

Sample Size

The number of observations or data points that are selected from a population for the purposes of statistical analysis.