An Equal Increase in All Bond Interest Rates

question 96

Multiple Choice

An equal increase in all bond interest rates

• A)increases the return to all bond maturities by an equal amount.
• B)decreases the return to all bond maturities by an equal amount.
• C)has no effect on the returns to bonds.
• D)decreases long-term bond returns more than short-term bond returns.

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Definitions:

Order-In-Council

A formal decision made by the executive branch of government, often requiring approval from the head of state or their representatives.

Administrative Bodies

Organizations or agencies created by the government to implement laws, regulations, and public policies.

Natural Justice

Procedural fairness in decision-making.

Business Operations

The ongoing, routine activities involved in the running of a business for the purpose of producing value for the stakeholders.