The Duration Rule Always ________ the Value of a Bond

question 69

Multiple Choice

The duration rule always ________ the value of a bond following a change in its yield.

• A) underestimates
• B) provides an unbiased estimate of
• C) overestimates
• D) The estimated price may be biased either upward or downward, depending on whether the bond is trading at a discount or a premium.

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Definitions:

Inducible Operon

A cluster of genes in bacteria that is turned on (or induced) in response to the presence of a specific substrate, allowing the bacteria to adapt to environmental changes.

Repressible Operon

A regulatory mechanism in genetics where the presence of a certain substance inhibits gene transcription, typically found in prokaryotic organisms.

Lactose Operon

A cluster of genes in bacteria that encodes enzymes responsible for the metabolism of lactose, regulated by the availability of this sugar.

Tryptophan Operon

A group of genes that are regulated together, involved in the biosynthesis of the amino acid tryptophan in bacteria.