Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A) For a given change in market interest rates, the prices of higher-coupon bonds change more that the prices of lower-coupon bonds.
• B) If market interest rates rise, a 1-year bond will fall in value more than a 10-year bond.
• C) If interest rates rise, bond prices will rise.
• D) If market interest rates rise, a 10-year bond will fall in value more than a 1-year bond.

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Definitions:

Personal Freedom

The liberty of individuals to pursue their own interests and choices without undue interference or restriction from societal norms or government.

Pleasure-Seeking Tendencies

The inclination towards behaviors or activities that provide immediate gratification or enjoyment.

Cultural Background

The environment, traditions, social and legal systems, and heritage shared by a group of people.

Biopsychosocial Approach

An integrated approach that incorporates biological, psychological, and social-cultural levels of analysis.