Interest Rate Risk Increases as

question 26

Multiple Choice

Interest rate risk increases as

• A)the time to maturity decreases.
• B)the coupon rate increases.
• C)a bond matures.
• D)the coupon payment decreases.
• E)either the time to maturity or the coupon rate increases.

---

Definitions:

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing hair follicles, sweat glands, and other structures.

Appendicular

Pertaining to limbs or appendages of the body, particularly the bones of the limbs and the structures associated with them.

Pelvis

The lower part of the torso in human and many animals, consisting of the hip bones surrounding the pelvic cavity.

Pectoral Girdle

The skeletal structure that provides support for the upper limbs, including the clavicles and scapulae.