The inverse relationship between present values and interest rates of a bond are NOT linear.
举一反三
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall
- A consumption function shows a A: negative (inverse) relationship between consumption expenditure and saving. B: positive (direct) relationship between consumption expenditure and price level. C: negative (inverse) relationship between consumption expenditure and disposable income. D: positive (direct) relationship between consumption expenditure and disposable income.
- 8．The risk investors have that a callable bond will be called when interest rates fall is Call risk. ( )
- The interest rates have seesawed between 10 and 15 per cent.
- Which of the following are true concerning the distinction between interest rates and return?