How Does the Size of the Change in a Bond's

question 36

Multiple Choice

How does the size of the change in a bond's price react in response to a given change in the yield to maturity as the time to maturity increases?

• A)decreases at an increasing rate
• B)decreases at a diminishing rate
• C)increases at a constant rate
• D)increases at a diminishing rate
• E)increases at an increasing rate

---

Definitions:

Bullied

Experiencing repeated aggressive behavior, typically involving a power imbalance, meant to harm or intimidate the victim.

Health

The state of being free from illness or injury, encompassing physical, mental, and social well-being.

Zemstvos

Local government institutions established in imperial Russia in the 19th century, responsible for providing social and economic services at the local level.

Dumas

A legislative body in the Russian Federation, historically a term referring to representative institutions in Imperial Russia.