For Small Change in Interest Rates, Market Prices of Bonds

question 59

Multiple Choice

For small change in interest rates, market prices of bonds move in an inversely proportional manner according to the size of the:

• A)equity
• B)asset value
• C)liability value
• D)duration value

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Definitions:

Trust

A fiduciary relationship in which one party, known as a trustee, holds title to property for the benefit of another party, known as a beneficiary.

Pay to

Directs the transfer of money or assets to a specified person, entity, or account as outlined in a financial or legal document.

Real Defenses

Legal defenses that can be used to challenge the enforceability of a negotiable instrument, such as fraud, duress, or alteration.

Holder in Due Course

An individual who has obtained a negotiable instrument in good faith and for value, and thus has certain rights to the instrument free of many defenses and claims that could be asserted against the original party.