Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)Bond prices converge to the bond's face value due to the time effect,but simultaneously move up and down due to unpredictable changes in bond yields.
• B)As interest rates and bond yields fall,bond prices will rise.
• C)Bonds with higher coupon rates are more sensitive to interest rate changes.
• D)Shorter maturity zero-coupon bonds are less sensitive to changes in interest rates than are longer-term zero-coupon bonds.

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Definitions:

Experimenter Effect

The influence that the experimenter's presence, behavior, or characteristics can have on the results of a research study.

Behaviorism

A theory in psychology which states that all behaviors are learned through interactions with the environment, and is centered on the belief that internal states such as thoughts, feelings, and motives are not necessary for understanding behavior.

Psychoanalysis

A method of mental therapy originating from Sigmund Freud, focusing on unconscious processes and resolved through dialogue between patient and psychoanalyst.

Sleep Deprivation

The condition of not having enough sleep; it can be chronic or acute, and may negatively impact physical, mental, and emotional functions.