Choose the Value Which Could Represent the Slope of the Line

question 131

Multiple Choice

Choose the value which could represent the slope of the line. Assume that the scale on the x -axis is the same as the scale
on the y-axis.
-

• A)-1
• B) -5
• C) 1
• D) 5

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Definitions:

Price Volatility

The rate at which the price of an asset increases or decreases for a given set of returns, indicative of the risk or stability.

High Coupon

Bonds or debt securities that offer a higher interest rate compared to the market average.

Long Maturity

Long maturity refers to bonds or other fixed-income securities with a longer period until their expiry date, typically associated with greater sensitivity to interest rate changes.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, reflecting how much the price is expected to change with a 1% move in rates.