Which of the Following Is False

question 23

Multiple Choice

Which of the following is false?

• A) As interest rates rise, bond prices rise, everything else the same.
• B) Given an absolute change in interest rates, the percentage increase in a bond's price will be greater than the percentage decrease, everything else the same.
• C) Long-term bonds change proportionately more in price than short-term bonds for a given rate change, everything else the same.
• D) A bond with a lower coupon will change more in price than a bond with a higher coupon, everything else the same.
• E) A bond's duration is a measure of its price elasticity.

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Definitions:

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution grants citizenship to all persons born or naturalized in the U.S. and guarantees all citizens equal protection of the laws, significantly impacting civil rights.

Citizen

An individual recognized under the law as being a legal member of a sovereign state or belonging to a nation, with associated rights and obligations.

Revised Act

An updated version of a law that has been amended or rewritten for clarification, modernization, or other legislative reasons.

Incorporator

The individual or entity responsible for filing the formal documents needed to legally form a corporation.