In the Allegory of the Cave, Plato Ask Us to Imagine

question 298

Multiple Choice

In the Allegory of the Cave, Plato ask us to imagine that the people who are chained can see ...

• A) physical objects interacting with them.
• B) only shadows cast on a wall.
• C) mythical creatures.
• D) paintings and statues.

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used as an indication of interest rate risk.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (the coupon) at regular intervals until the bond matures, when the principal amount is repaid.

Zero-Coupon Bond

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, offering profit at maturity when the bond is redeemed for its full face value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates.