For an Absolute Change in Interest Rates, the Price Gain

question 28

Multiple Choice

For an absolute change in interest rates, the price gain on a bond caused by a decrease in yield is ________ the price loss caused by an increase in yield.

• A) greater than
• B) the same as
• C) less than
• D) Greater than if the bond is selling at a premium, less than if the bond is selling at a discount.
• E) Greater than if the bond is selling at a discount, less than if the bond is selling at a premium.

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Definitions:

Zoloft

A medication commonly prescribed to treat depression, anxiety, and other mental health conditions; it belongs to the SSRI class.

Deinstitutionalisation

The policy of moving individuals with mental health conditions out of state-run institutions and then closing these facilities as part of the mental health treatment reform.

Antianxiety Drugs

Medications that are used to treat and reduce symptoms of anxiety.

Dopamine Synapses

The junctions between neurons where dopamine, a neurotransmitter involved in reward and pleasure, is transmitted.