If You Expected Interest Rates to Fall,you Would Prefer to Own

question 62

Multiple Choice

If you expected interest rates to fall,you would prefer to own bonds with

• A) short maturities and low coupons.
• B) long maturities and high coupons .
• C) long maturities and low coupons.
• D) short maturities and high coupons.
• E) none of the above.

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Definitions:

True

A logical or Boolean value indicating affirmative or confirmation, often represented digitally as '1' in binary.

Pressure Switch

A device that closes or opens an electrical contact when a certain set fluid pressure has been reached on its input.

Selector Switch

A switch used to select between two or more different operations or circuits.

Pushbutton

a mechanical switch that is activated or deactivated by pressing it, commonly used to control devices or initiate actions.