The Mathematical Link Between a Bond's Price and Interest Rate

question 119

Multiple Choice

The mathematical link between a bond's price and interest rate changes is the

• A) Macaulay duration.
• B) modified duration.
• C) yield to market.
• D) yield-to-call.

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Definitions:

Behaviourism

A school of psychology that focuses on observable behaviors and disregards mental activities.

Functionalism

A theory in psychology that considers mental life and behavior in terms of active adaptation to the person's environment.

William James

Often referred to as the father of American psychology, he was a philosopher and psychologist who was the first educator to offer a psychology course in the United States, making significant contributions to psychology, especially in the areas of education, religion, and mysticism.

Conscious Experience

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.