Ceteris Paribus, as Interest Rates Rise, Which of These Statements

question 9

Multiple Choice

Ceteris paribus, as interest rates rise, which of these statements is most likely to be true?

• A) The duration of bonds rises.
• B) The duration of bonds falls.
• C) Newly issued bonds have a higher duration than bonds issued some time ago.
• D) The volatility of bonds increases.

---

Definitions:

Semantics

The branch of linguistics and logic concerned with meaning, including the ways that language conveys and processes information.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifying the correct word order and phrasing.

Pragmatics

The branch of linguistics that studies how context influences the interpretation of meaning.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language.