Which of the Following Statements Is Correct

question 60

Multiple Choice

Which of the following statements is correct?

• A) Short-term debt instruments are more volatile in price than long-term instruments.
• B) Coupon rates are generally fixed when the bond is issued.
• C) Bond prices and market interest rates move together.
• D) The higher the coupon of a bond, the lower its price.

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Definitions:

Costs More

Refers to an increase in financial expenditure or the necessity to spend more money on a specific item or service.

Indifference Schedule

A tabular representation showing combinations of goods between which a consumer is indifferent, reflecting similar preferences as an indifference map.

Units of X

A quantifiable amount of a product or resource, denoted as 'X', used in various contexts to measure output, consumption, or other economic variables.

Marginal Rate

refers to the rate at which one variable changes as another variable changes slightly, commonly used in the context of taxes or interest.