The Best Way for an Investor to "Lock In" to High

question 18

Multiple Choice

The best way for an investor to "lock in" to high interest rates would be to purchase a bond that has a ____ coupon and a ____ term to maturity.

• A) Low, short
• B) Low, long
• C) High, short
• D) High, long
• E) Zero, very long

---

Definitions:

Volcanic Activity

The process of magma rising from the Earth's interior, leading to volcanic eruptions that release lava, ash, and gases.

Diffusion

The movement of particles from an area of higher concentration to an area of lower concentration until they are evenly distributed.

Ecological Efficiency

The efficiency with which energy is transferred from one trophic level to the next in an ecosystem. Typically only a small percentage of energy is passed on to the next level.

Trophic Level

A step in a food chain or food web, representing the position of organisms in the flow of energy through an ecosystem.