Volatile High Interest Rates Have Directly Caused More Emphasis on Duration

question 45

Multiple Choice

Volatile high interest rates have directly caused more emphasis on duration analysis because

• A)Investors have responded to the new environment by switching from short-term to longer-term securities
• B)Prices of longer-term bonds are more sensitive to shifts in interest rates than shorter-term bonds
• C)Duration analysis measures the degree of bond price sensitivity
• D)All of the above

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Definitions:

Motor Neurons

Neurons that transmit signals from the brain or spinal cord to muscles or glands, causing them to act.

Spinal Cord

The cylindrical bundle of nerve fibers that runs from the brainstem down the spine and mediates nerve signals between the brain and the body.

Reflexes

Reflexes are involuntary and nearly instantaneous movements in response to a stimulus, serving as basic building blocks of behavior and survival mechanisms.

Peripheral Nervous System

A part of the nervous system that lies outside the brain and spinal cord, responsible for transmitting information to and from the central nervous system and the rest of the body.