As a Bond's Time to Maturity Increases, the Bond's Sensitivity

question 36

Multiple Choice

As a bond's time to maturity increases, the bond's sensitivity to interest rate risk:

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

---

Definitions:

Facilitates Apology

The process or action that makes it easier for individuals to express regret or remorse for wrongdoing, often contributing to reconciliation and conflict resolution.

Information Richness

The potential information-carrying capacity of a communication medium.

Paraverbal Cues

Non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, pitch, and pacing.

Non-verbal Cues

Subtle signals, such as body language or facial expressions, used to communicate emotions, intentions, or information without the use of words.