Which of the Following Is Not True

question 37

Multiple Choice

Which of the following is not true?

• A) Holding other things constant,the duration of a bond increases with time to maturity.
• B) Given time to maturity,the duration of a zero-coupon decreases with yield to maturity.
• C) Given time to maturity and yield to maturity,the duration of a bond is higher when the coupon rate is lower.
• D) Duration is a better measure of price sensitivity to interest rate changes than is time to maturity.
• E) All of these.

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Definitions:

Noncontrolling Interest

The portion of equity in a subsidiary not owned by the parent company, reflecting the interest of minor shareholders.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses.

Buildings

Physical structures used for business operations or investment, considered as fixed assets on a company's balance sheet.