For a Given Change in Interest Rates, the Longer the Bond's

question 121

Multiple Choice

For a given change in interest rates, the longer the bond's maturity, the ________ the price change.

• A) greater
• B) same
• C) smaller
• D) Greater for a premium bond, smaller for a discount bond.
• E) None of the above.

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Definitions:

Cyclopentyl

A prefix for molecules containing a cyclopentane ring structure attached to another part of the molecule.

IUPAC Name

The systematic naming of chemical substances based on the rules established by the International Union of Pure and Applied Chemistry.

Bromo

A prefix indicating the presence of a bromine atom in an organic compound, typically used in nomenclature to denote substitution position.

IUPAC Name

The systematic naming convention for chemical substances assigned based on the structure of molecules, according to rules established by the International Union of Pure and Applied Chemistry.