One of the Basic Relationships in Interest Rate Theory Is

question 26

Multiple Choice

One of the basic relationships in interest rate theory is that,other things held constant,for a given change in the required rate of return,the ____ the time to maturity,the ____ the change in price.

• A) longer;smaller
• B) shorter;larger
• C) longer;greater
• D) shorter;smaller
• E) Answers c and d are both correct.

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