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Lena [83]
2 years ago
7

Bond price volatility varies directly with the term to maturity and directly with the coupon. Group of answer choices True False

Business
1 answer:
Reptile [31]2 years ago
5 0

Answer: False

Explanation:

Bond Price Volatility does indeed have a positive relationship with term to Maturity because the longer the term to Maturity, the more the bond can be affected by interest rates which will lead to price changes.

However, Bond Price Volatility has an Indirect relationship with Coupon rates. The higher the Coupon rate, the lower the volatility because interest rates affect bonds that are paying lower coupons more than they do high ones. Having a higher coupon bond means that price does not change as much due to interest rates.

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Answer:

The correct answer is 4

Explanation:

OVB stands for the Omitted Variable bias, is the term which is defined as the any variable which is not involves or included as the independent variable in the regression, which could influence or impact the variable that is dependent.

From the above options, the omitted variable is the variable which is defined as the which has been left out, if involves, will state the reason why the variable will be considered in the study are correlated to each other.

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8.2

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3 years ago
Cavincare has 50 years remaining on a service contract with Martin, Inc. Today, Martin paid $120,000 for services received last
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Answer:

$980,879

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= 980,878.752

= $980, 879

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