Which of the Following Increase the Price Sensitivity of a Bond

question 40

Multiple Choice

Which of the following increase the price sensitivity of a bond to changes in interest rates?
I.increase in time to maturity
II.decrease in time to maturity
III.increase in coupon rate
IV.decrease in coupon rate

• A)II only
• B)I and III only
• C)I and IV only
• D)II and III only
• E)II and IV only

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Definitions:

Sales Potential

The maximum sales revenue or units a product or service could achieve in a specific market under ideal conditions.

Prospect's Past Sales

Historical sales data of a potential client or customer, analyzed to understand buying patterns, preferences, and potential for future transactions.

Undifferentiated Selling

A marketing approach where a product or service is offered to the market without any modification or customization to meet varied customer needs.

Account Segmentation

The process of dividing customer accounts into distinct groups based on characteristics like size, needs, or purchasing behavior to tailor marketing and sales efforts.