Which of the Following Are Generally TRUE of All Bonds

question 52

Multiple Choice

Which of the following are generally TRUE of all bonds?

• A)The longer a bond's maturity,the greater is the rate of return that occurs as a result of the increase in the interest rate.
• B)Even though a bond has a substantial initial interest rate,its return can turn out to be negative if interest rates rise.
• C)Prices and returns for short-term bonds are more volatile than those for longer term bonds.
• D)A fall in interest rates results in capital losses for bonds whose terms to maturity are longer than the holding period.

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Definitions:

Input Retarder

A driveline brake located between the torque converter housing and the main transmission housing. Input retarders use a paddle wheel design with a vaned rotor mounted between stator vanes in the retarder housing; retardation occurs when oil is directed into the retarder housing.

Chassis Auxiliary

Additional systems or components attached to the main frame of a vehicle, enhancing its function or performance.

Allison Automatic Transmission

A brand of automatic transmission for heavy machinery and vehicles, known for durability and efficiency in transferring engine power to the wheels.

BrakeSaver

A system designed to reduce wear and tear on truck brakes by using engine resistance or auxiliary braking mechanisms to slow down the vehicle.