Which One of the Following Statements Is Correct Concerning Interest

question 56

Multiple Choice

Which one of the following statements is correct concerning interest rate risk as it relates to bonds,all else equal?

• A)The shorter the time to maturity,the greater the interest rate risk.
• B)The higher the coupon,the greater the interest rate risk.
• C)For a bond selling at par,there is no interest rate risk.
• D)The greater the number of semiannual interest payments,the greater the interest rate risk.
• E)The lower the amount of each interest payment,the lower the interest rate risk.

---

Definitions:

Desirable Behavior

Actions or behaviors that are viewed positively by society or specific groups, often encouraged because they fulfil certain norms or expectations.

Severe Punishment

Harsh or stringent disciplinary action intended to correct behavior or serve as a deterrent to others.

Manager's Presence

The perceived availability and active engagement of a manager in the workplace, which can affect employee motivation and performance.

Reinforcement Size

Reinforcement size relates to the magnitude or amount of reinforcement given which can affect the strength and rate of the behavior it is intended to modify.