Which of the Following Is Indicated by High Numerical Value

question 7

Multiple Choice

Which of the following is indicated by high numerical value of the duration of an asset?

• A) Low sensitivity of an asset price to interest rate shocks.
• B) High interest inelasticity of a bond.
• C) High sensitivity of an asset price to interest rate shocks.
• D) Lack of sensitivity of an asset price to interest rate shocks.

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Definitions:

Counteroffer

A response to an offer in which the original offer is rejected and a new offer is proposed in its place.

Article 2

A section of the Uniform Commercial Code that governs sales of goods in the United States.

Firm Offer

in commercial law refers to a binding proposal made by a seller to sell goods or services at a specified price, which cannot be withdrawn for a certain period.

Merchant

An individual or company engaged in the business of selling goods or services.