Which One of the Following Combination of Features Causes Bond

question 93

Multiple Choice

Which one of the following combination of features causes bond prices to be the most volatile?

• A) low coupon, short maturity
• B) high coupon, short maturity
• C) low coupon, long maturity
• D) high coupon, long maturity

---

Definitions:

Hostile Behavior

Actions or attitudes that are aggressive, unfriendly, or antagonistic towards others.

Blasting Intense Noise

The act of emitting extremely loud and potentially damaging sound, often used as a form of crowd control or psychological manipulation.

Mere Exposure Effect

The psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Unfamiliar Stimulus

A new or unknown stimulus that has not been previously encountered by an individual, often triggering a learning or adaptation process.