Which of the Following Statements About Bonds Is True

question 120

Multiple Choice

Which of the following statements about bonds is true?

• A)The market value of a bond moves in the opposite direction of market interest rates.
• B)As the maturity date of a bond approaches,the market value of a bond will become more volatile.
• C)Long-term bonds are less risky than short-term bonds.
• D)If market interest rates are higher than a bond's coupon interest rate,then the bond will sell above its face value.
• E)None of the above.

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Definitions:

Self-Induced

Generated or caused by one's own actions or decisions.

Behaviour Modification Programs

Structured approaches aiming to change maladaptive behaviors into positive ones through reinforcement techniques.

Reinforcers

Stimuli, events, or conditions that increase the likelihood of a behavior being repeated, acting as incentives or rewards in behavioral psychology.

Control Of Antecedents

A behavior modification strategy involving changing the environment or stimuli before a behavior occurs to influence or prevent that behavior.