Which of the Following Statements Is True

question 100

Multiple Choice

Which of the following statements is true?

• A) As time passes and a bond approaches its maturity date the price will converge to par value plus the final interest payment.
• B) The most important factor having an impact on a bond's price is the current yield on the bond.
• C) Bond prices and interest rates move in the same direction.
• D) Shorter-term bonds are more sensitive to changes in interest rates than longer-term bonds.
• E) None of the above statements is true.

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Definitions:

Imagination

The ability of the mind to be creative or resourceful, forming images or concepts of external objects not present to the senses.

Intelligence

The capacity for learning, understanding, and applying knowledge, as well as the ability to engage in abstract thinking and reasoning.

Job Interviews

A formal meeting in which a potential employer evaluates a job applicant's qualifications and suitability for a position.

Computer-Mediated Interviews

Interviews conducted using computers or online technology to facilitate communication between the interviewer and the interviewee.