The Tendency of the Variance of a Bond's Price to Decrease

question 46

Multiple Choice

The tendency of the variance of a bond's price to decrease as maturity approaches is called

• A)open interest.
• B)pull-to-par.
• C)digital default option.
• D)futures option.

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Definitions:

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.

Ethnic Minority

A group within a country or society that is distinguished from the majority by cultural, religious, linguistic, or racial characteristics, and often experiences differential treatment or marginalization.

Media

The various means of mass communication considered collectively, including television, radio, newspapers, and the internet, that disseminate information or entertainment to the public.

Racial Purity

A controversial and debunked concept often used to justify discriminatory practices, suggesting that certain races should remain "pure" and not intermix with others.