Which of the Following Are Generally TRUE of Bonds

question 5

Multiple Choice

Which of the following are generally TRUE of bonds?

• A)A bond's return equals the yield to maturity when the time to maturity is the same as the holding period.
• B)A rise in interest rates is associated with a fall in bond prices,resulting in capital gains on bonds whose terms to maturity are longer than the holding periods.
• C)The longer a bond's maturity,the smaller is the size of the price change associated with an interest rate change.
• D)Prices and returns for short-term bonds are more volatile than those for longer-term bonds.

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Definitions:

Mean Height

The average height of a group of individuals, calculated by summing their heights and dividing by the number of individuals.

Confidence Interval

A spectrum of values obtained from statistics of a sample, which is likely to encompass the actual population parameter at a specific probability level.

Random Sample

A random sample is a subset of individuals chosen from a larger set, where each individual has an equal chance of being selected.

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The amount of money currently available in someone's checking account.