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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Definitions:

Axons

The long, slender projections of a neuron that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Interneurons

Neurons located in the central nervous system that process and relay information between sensory neurons and motor neurons.

Endorphins

Substances produced by the body that bind to brain receptors to diminish the sensation of pain and induce a state of intense happiness.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling most functions of the body and mind.