Find a - B ​
A) $$\left[ \begin{array} { c c } 1 & - 12 \\7 & 10 \\- 6 & - 3\end{array} \right]$$

question 7

Multiple Choice

Find A - B.​ $$A = \left[ \begin{array} { c c } 4 & - 4 \\4 & 5 \\- 3 & 4\end{array} \right] , B = \left[ \begin{array} { c c } 3 & 8 \\- 3 & - 5 \\3 & 7\end{array} \right]$$ ​

• A) \[\left[ \begin{array} { c c }
• 1 & - 12 \\
• 7 & 10 \\
• - 6 & - 3
• \end{array} \right]\]
• B) \[\left[ \begin{array} { c c }
• 3 & - 12 \\
• 7 & - 3 \\
• - 6 & 10
• \end{array} \right]\]
• C) \[\left[ \begin{array} { c c }
• 5 & - 12 \\
• - 6 & 10 \\
• 7 & - 3
• \end{array} \right]\]
• D) \[\left[ \begin{array} { c c }
• - 1 & 10 \\
• 7 & - 12 \\
• - 6 & - 3
• \end{array} \right]\]
• E) \[\left[ \begin{array} { c c }
• - 3 & - 12 \\
• 10 & 7 \\
• - 6 & - 3
• \end{array} \right]\]

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Definitions:

Interest Rate Risk

The risk of losing value in an investment due to a change in interest rates, affecting both bonds and loans.

Long-Duration Bonds

Bonds with a longer time until maturity, typically more than 10 years, making them more sensitive to changes in interest rates.

Duration Rule

A principle that estimates the sensitivity of a bond's price to changes in interest rates, calculated as the weighted average time until a bond's cash flows are received.

Yield

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage of the investment's cost.