If You Expected Interest Rates to Rise, You Would Prefer

question 9

Multiple Choice

If you expected interest rates to rise, 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:

Pastel Flowers

Flowers characterized by their soft, pale colors, often used in decoration and gardening for their subtle and delicate appearance.

Red

A primary color that is often associated with strong emotions such as love or anger.

Wallpaper

Decorative paper for the walls of rooms, designed in a wide variety of colors and patterns, used to enhance the aesthetic appearance of interior spaces.

Rooting Reflex

A newborn reflex where a baby turns its head towards anything that strokes its cheek or mouth, preparing the infant to suckle.