Which of the Following Is Not True

question 76

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 the options

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Definitions:

Economic Booms

Periods of rapid economic growth and expansion, characterized by increased production, employment, and consumer spending.

Quantity of Money

The complete encompassment of monetary resources in an economy at a given time.

Cost of Living

An economic concept that estimates the amount needed to cover basic expenses in a particular place and time period.

Future Income

Expected earnings or revenue streams in the coming periods, often factored into financial planning and investment decisions.