The duration of a coupon bond increases
A) the longer is the bond's term to maturity.
B) when interest rates increase.
C) the higher the coupon rate on the bond.
D) the higher the bond price.
A
You might also like to view...
Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unanticipated changes in government policy cause the inflation rate to increase to 6 percent
In the short run, we would expect the unemployment rate to A) increase, but the exact amount cannot be known for sure. B) decrease. C) increase to 10 percent. D) remain constant.
Country A has a higher GDP than country B. What does this mean?
A) It means that on a per-capita basis the residents of country A are relatively better off (in terms of the goods and services they have available to them) than the residents of country B. B) It means that on a per-capita basis the residents of country A are richer than the residents of country B. C) It means that more goods and services were produced in country A than country B. D) It means that the total market value of the final goods and services produced in country A is greater than the total market value of the final goods and services produced in country B. E) a and d
Refer to the information provided in Figure 26.1 below to answer the question(s) that follow.
Figure 26.1Refer to Figure 26.1. Between the output levels of $500 billion and $1,000 billion, the relationship between the price level and output is
A. negative. B. positive. C. constant. D. indeterminate.
Smart Sam can make a $200 investment that yields $1000 50% of the time and $0 50% of the time. What is his expected return on the investment?
a. $200 b. $300 c. $400 d. $500