Which of the Following Relationships Does NOT Hold in the Pricing

question 97

Multiple Choice

Which of the following relationships does NOT hold in the pricing of fixed-rate assets given changes in market rate?

• A)A decrease in interest rates generally leads to an increase in the value of assets.
• B)Longer maturity assets have greater changes in price than shorter maturity assets for given changes in interest rates.
• C)The absolute change in price per unit of maturity time for given changes in interest rates decreases over time,although the relative changes actually increase.
• D)For a given percentage decrease in interest rates,assets will increase in price more than they will decrease in price for the same,but opposite increase in rates.

---

Definitions:

Category Specialists

Retailers or businesses that focus on a specific category of products, offering a wide selection and deep knowledge within that category.

Category Killers

are large retail chain stores that specialize in a single category of products and dominate that category, often leading to the decline of small specialty stores.

Omnichannel Operations

A multi-channel approach to sales and customer service that provides an integrated and cohesive customer experience no matter how or where a customer reaches out.

CRM

Customer Relationship Management, a strategic approach that companies use to manage interactions with current and potential customers, often utilizing data analysis to improve business relationships.