When Interest Rates Increase,the Duration of a 20-Year Bond Selling

question 50

Multiple Choice

When interest rates increase,the duration of a 20-year bond selling at a premium _________.

• A) increases
• B) decreases
• C) remains the same
• D) increases at first, then declines

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Definitions:

Saturated Fat

A type of dietary fat found primarily in animal products and certain oils, which, when consumed in high amounts, can contribute to heart disease.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks for cells, muscles, and tissues in the body.

Soluble Fiber

A type of dietary fiber that can dissolve in water, forming a gel-like substance that helps to slow digestion and can have beneficial effects on blood sugar and cholesterol levels.

Dietary Reference Intakes

Guidelines developed for nutrients and other dietary components that advise how much should be consumed daily to maintain good health.