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- Subject
- Security Valuationfinance-mcqs › security-valuation
- Published
- 13 May 2023
- Last updated
- 28 May 2026
Explanation
Positive duration refers to the direct relationship where an increase in interest rates leads to a decrease in price and vice versa. The other options relate to discount factors or inverse relationships that do not describe this direct connection.
More Security Valuation MCQs
Practice related questions from the same subject.
- 1.Which term describes the inverse correlation between fluctuations in price and changes in interest rates?
- 2.For zero-coupon bonds, how does the duration change as the maturity lengthens?
- 3.What is the classification of a bond whose present market value exceeds its face value?
- 4.What is the term for the interest rate that investors expect to earn on a financial asset when determining its fair value?
- 5.Which type of bond is issued without periodic interest payments?
- 6.What term describes the weighted average period until an investment matures?
- 7.What term describes the percentage change in a bond's present value resulting from a given change in interest rates?
- 8.Which category of bonds provides periodic coupon payments to investors?
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