Which of the Following Are Generally True of All Bonds

question 89

Multiple Choice

Which of the following are generally true of all bonds?

• A) The only bond whose return equals the initial yield to maturity is one whose time to maturity is the same as the holding period.
• B) A rise in interest rates is associated with a fall in bond prices, resulting in capital losses on bonds whose term to maturities are longer than the holding period.
• C) The longer a bond's maturity, the greater is the price change associated with a given interest rate change.
• D) All of the above are true.
• E) Only A and B of the above are true.

---

Definitions:

Knowledge Of The Business

An understanding of the key factors that make an organization or industry operate effectively, including its products, market, and competitive landscape.

Leadership Characteristic

An inherent trait or quality that enhances an individual's ability to lead effectively.

Staff Specialists

Employees with expert knowledge or skills in a specific field who provide advice and services to support the organization's objectives.

Internal Locus

The belief that one is in control of their life and outcomes, as opposed to external forces having that control.