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.

---

Definitions:

Centrality-performance Hypothesis

A theory suggesting that the more central a person is within a network, the better their performance is likely to be due to access to resources and information.

Network Structure

The pattern of connections or relationships between entities or components within a network.

Trust-ties

Bonds of trust established between individuals or entities, facilitating cooperation, communication, and shared expectations.

Emotional

Pertaining to feelings, moods, and their effects on individual behavior and decision-making.