Which of the Following Statements Is FALSE

question 63

Multiple Choice

Which of the following statements is FALSE?

• A)Prices of bonds with lower durations are more sensitive to interest rate changes.
• B)When a bond is trading at a discount,the price increase between coupons will exceed the drop when a coupon is paid,so the bond's price will rise and its discount will decline as time passes.
• C)Coupon bonds may trade at a discount,at a premium,or at par.
• D)The sensitivity of a bond's price changes in interest rates is the bond's duration.

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Definitions:

Unconditional Positive Regard

An attitude of acceptance and support towards another, regardless of what the person says or does.

Genuineness

The quality of being authentic and sincere in one's interactions, oftentimes considered an important trait in therapeutic contexts.

Preexisting Stereotypes

Preconceived and oversimplified beliefs or ideas held about certain groups or individuals before learning more about them.

Automatic Influence

The unconscious impact of external factors on an individual's thoughts, feelings, or actions.