Which of the Following Combinations Is Assured to Decrease the Interest

question 105

Multiple Choice

Which of the following combinations is assured to decrease the interest rate sensitivity of a bond?

• A) Increase in both the time to maturity and the coupon rate
• B) Increase in the time to maturity and a decrease in the coupon rate
• C) Decrease in both the time to maturity and the coupon rate
• D) Decrease in the time to maturity and an increase in the coupon rate
• E) A decrease in the time to maturity and an increase in the face value

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Definitions:

Prosocial Behavior

Refers to voluntary actions aimed at helping others, including behaviors like sharing, comforting, or rescuing.

Physical Conflict

A confrontation involving bodily force between individuals or groups.

Aggression

Behavior intended to harm or intimidate others, manifested either physically or verbally.

Moral Reasoning

The process of determining right or wrong in ethical situations, often involving complex thought and the consideration of ethical principles.