A Bond Portfolio Containing a Large Portion of Zero-Coupon Bonds

question 30

True/False

A bond portfolio containing a large portion of zero-coupon bonds will be more favorably affected by declining interest rates than a bond portfolio containing no zero-coupon bonds. ​

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Definitions:

Specific Group

A defined set of individuals or entities distinguished by certain shared characteristics or criteria.

Constitutes Offense

Defines or establishes the act or actions considered to be a violation of law or rules.

Modified Comparative Negligence

In some states, a defense whereby the defendant is not liable for the percentage of harm that he or she proves can be attributed to the plaintiff's own negligence if the plaintiff's negligence is responsible for less than 50 percent of the harm. If the defendant establishes that the plaintiff's negligence caused more than 50 percent of the harm, the defendant has no liability.

Fault Percentage

The degree of responsibility, expressed as a percentage, attributed to each party in a legal dispute.