Which of the Following Observations Is NOT True

question 60

Multiple Choice

Which of the following observations is NOT true?

• A)Variance of bond prices is nonconstant over time.
• B)Variance of bond prices rises at first and then falls as the bond approaches maturity.
• C)As the bond approaches maturity, all price paths must lead to 100 percent of the face value of the bond.
• D)As the bond approaches maturity, all price paths must lead to the principal paid by the issuer on maturity.
• E)Variance of a bond's price or return increases as maturity approaches.

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Definitions:

Inferior End

The lowermost part or section of a structure or organ.

Pulmonary Trunk

The major blood vessel that carries blood from the right ventricle of the heart to the lungs for oxygenation.

Oxygen-rich Blood

Blood that has been oxygenated in the lungs and is then transported by the arteries to deliver oxygen to cells throughout the body.

Pulmonary Trunk

The blood vessel that carries blood from the right ventricle of the heart to the lungs for oxygenation.