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    Financial Assets and Interest Rates

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    Which of the following financial assets would be most susceptible (vulnerable) to a decline in value if interest rates increased?

    a. a short term fixed income financial asset (ex. short term bond)
    b. a long term fixed income financial asset (ex. long term bond)
    c. a long term variable interest rate income financial asset
    d. they would all be approximately equally susceptible to a decline in value.
    e. None of the above or insufficient information

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    Which of the following financial assets would be most susceptible (vulnerable) to a decline in value if interest ...

    Solution Summary

    This solution is comprised of a brief answer in regards to the multiple choice selection about financial assets vulnerable to declines in value if interest rates increase.

    $2.19

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