The Prices of ____-Coupon Bonds and Bonds with ____ Maturities

question 7

Multiple Choice

The prices of ____-coupon bonds and bonds with ____ maturities are most sensitive to changes in the required rate of return.

• A)low; short
• B)low; long
• C)high; short
• D)high; long

---

Definitions:

Unreliability

The characteristic of being not reliable or dependable, often resulting in unpredictability and inconsistency.

Undercounting

The act of recording less than the actual number or amount, often referring to the miscounting of populations in censuses or surveys.

Variable

A characteristic, number, or quantity that can be measured or counted and can vary from one entity or situation to another.

Knowledge

Information, understanding, or skills acquired through experience or education; the theoretical or practical understanding of a subject.