Which of the Following Statement Is Incorrect If Interest Rates

question 296

Multiple Choice

Which of the following statement is incorrect if interest rates fall?

• A) Bond prices will rise.
• B) Coupon payments on floating rate bonds will fall.
• C) The percentage price change for long-term bonds will be greater than for short-term bonds.
• D) The percentage price change for low coupon bonds will be greater than for high coupon.
• E) Coupon payments on floating rate bonds will rise.

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Definitions:

Transference

An emotional reaction that occurs during psychoanalysis, in which the patient displays feelings and attitudes toward the analyst that were present in another significant relationship.

Self-Actualization

The pursuit of self-defined goals for personal fulfillment and growth.

Resistance

Opposition in psychotherapy, where the patient either consciously or unconsciously opposes discussing, recalling, or engaging with certain thoughts, feelings, or experiences.

Transference

A psychological phenomenon where feelings for one person are unconsciously redirected to another, often occurring in therapy.