In General, Price Changes Due to a Given Interest Rate

question 55

Multiple Choice

In general, price changes due to a given interest rate change will be:

• A)smaller as the term of the bond extends farther in time.
• B)larger as the term of the bond extends farther in time.
• C)smaller as the maturity date nears.
• D)b and c

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Definitions:

Fair Housing Act

A U.S. law enacted in 1968 aimed at preventing discrimination when renting or selling residential property based on race, religion, national origin, sex, (and as later amended) disability and family status.

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The illegal practice of denying individuals or groups the opportunity to rent, buy, or negotiate for housing based on race, color, religion, sex, disability, familial status, or national origin.

Traditional Rule

A long-established guideline or principle that is followed in a specific field or practice.

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The obligation to answer for an action or activity within the boundaries of law, which may involve liability for damages or penalties.