Determine the Intervals on Which the Following Polynomial Is Entirely

question 87

Multiple Choice

Determine the intervals on which the following polynomial is entirely negative and those on which it is entirely positive.

• A)entirely negative: ; entirely positive:
• B)entirely negative: , ; entirely positive:
• C)entirely negative: , ; entirely positive:
• D)entirely negative: ; entirely positive: ,
• E)entirely negative: ; entirely positive:

---

Definitions:

Duration

An indicator of how a bond or debt security's price is affected by interest rate fluctuations, usually stated in terms of years.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.

Convexity

A gauge of how changes in interest rates affect the relationship between the price of bonds and their yields, showing alterations in the bond's duration.

Price-yield Curve

A graphical representation that shows the relationship between the yield of a bond and its price, demonstrating how bond prices move inversely to changes in yield.