For Small Change in Interest Rates, Market Prices of Bonds

question 23

Multiple Choice

For small change in interest rates, market prices of bonds move in an inversely proportional manner according to the size of the

• A)equity.
• B)asset value.
• C)liability value.
• D)duration value.
• E)equity and asset value.

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Definitions:

Confidence Interval

A selection of values, based on sample statistics, forecasted to incorporate the value of an unknown population parameter.

Population Mean

Population mean is the average of all the values in a population.

Standard Deviation

A statistic that measures the dispersion or variation of a dataset relative to its mean, indicating how spread out the data points are.

Population Mean

The average value of all items in a population, representing the central point of a data set.