The Duration of a 40-Year,$1,000 Bond at a Market Rate

question 13

Multiple Choice

The duration of a 40-year,$1,000 bond at a market rate of 4 percent is _________ the duration of an identical bond at a market rate of 6 percent.

• A)Greater than
• B)Less than
• C)Equal to
• D)There is not enough information to tell

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Definitions:

Endorse

To sign the back of a financial document or to publicly support a product, candidate, or policy.

Actual Name

The legal name under which an individual or entity is registered for official purposes.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a general disdain for other cultures.

Grapevine

An unofficial channel of communication within an organization, characterized by the informal and rapid spread of information and rumors.