The Mathematical Link Between a Bond's Price and Interest Rate

question 119

Multiple Choice

The mathematical link between a bond's price and interest rate changes is the

• A) Macaulay duration.
• B) modified duration.
• C) yield to market.
• D) yield-to-call.

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Definitions:

Reinforcement

A process in behavior analysis that increases the likelihood of a behavior being repeated by applying a rewarding stimulus or removing a negative one.

Cognitive-behavioral Theorists

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A chronic mental health condition in which social interactions cause irrational anxiety and fear.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof, shaping an individual's perception and actions.