For the Same Change in Interest Rates Bondholder's Will Realize

question 20

Multiple Choice

For the same change in interest rates bondholder's will realize:

• A) a greater capital gain when rates rise than capital loss when rates fall
• B) a greater capital gain when rates fall than capital loss when rates rise
• C) a greater capital loss when rates rise than capital gain when rates fall
• D) a greater capital loss when rates fall than capital gain when rates rise
• E) the same capital gain or loss when rates rise or fall

---

Definitions:

Alpha Particle

An alpha particle is a type of ionizing radiation consisting of two protons and two neutrons, emitted from the nucleus of an atom during radioactive decay.

Beta Particle

A high-speed electron or positron emitted by certain types of radioactive decay, representing high-energy, high-speed electrons.

Atomic Nucleus

The central core of an atom containing protons and neutrons, and around which electrons orbit.

Radioactive Material

A material containing unstable nuclei that emit radiation as they decay, including alpha particles, beta particles, and gamma rays.