A Normal Bond Values Fall with Interest Rate Increases but the Following

question 74

Multiple Choice

A normal bond values fall with interest rate increases but the following bond often has a negative duration and therefore it is potentially attractive to banks and non-bank FIs seeking to hedge their regular bond and fixed-income portfolios.

• A)A Class
• B)B Class
• C)Z Class
• D)R Class

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Definitions:

Major Customer

A client who contributes a significant portion of a company's revenue, often crucial to the company's financial health.

Operating Segments

Components of a business for which separate financial information is available and regularly evaluated by the company's decision-makers in deciding how to allocate resources and assess performance.

Reportable

Anything that must be officially noted and disclosed, often within financial contexts or compliance reporting.

Geographic Area

A specific portion of space distinguished by geographical boundaries or attributes, often used for analysis in business or economics.