The Option Adjusted Duration Will Approach the Duration to Maturity,when

question 100

Multiple Choice

The option adjusted duration will approach the duration to maturity,when

• A) Interest rates are significantly above the coupon rate because the option has very little chance of being called, and the call option will have very little value.
• B) Interest rates are significantly below the coupon rate because the option has very little chance of being called, and the call option will have very little value.
• C) Interest rates are significantly above the coupon rate because the option has a high chance of being called, and the call option will have significant value.
• D) Interest rates are significantly below the coupon rate because the option has a high chance of being called, and the call option will have significant value.
• E) None of the above.

Understand the impact of economic, legal/regulatory, and technological environments on business operations and strategies.

Understand the historical primary role of business in an economic context.

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Recognize the purpose and importance of a code of ethics within an organization.

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