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:

Psychological Essentialism

The idea that people possess implicit theories about fundamental characteristics that all instances of a concept contain or embody.

Mental Representation

Internal cognitive symbols that represent external reality or abstract concepts, enabling understanding and reasoning.

Essences

The intrinsic nature or indispensable quality of something, especially something abstract, that determines its character.

DNA

Stands for Deoxyribonucleic Acid, which is a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.