Which of the Following Will Generally Result in a Higher

question 100

Multiple Choice

Which of the following will generally result in a higher price for a bond?

• A) Higher coupon rate.
• B) Longer maturity.
• C) Shorter maturity.
• D) Higher required rate of return.

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Definitions:

Exponential Smoothing

A weighted moving average method that is used in time series forecasting to smooth out data and predict future points.

Three-Month Moving Average

An average calculation that updates by incorporating the most recent three months' data and dropping the oldest month in each new calculation.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Associative Variables

Factors in statistical analysis that are linked or related in such a way that their values change together in a predictable pattern.