Interest Rate Theory ?

Here's my press:

One of the essential relationships surrounded by interest rate idea is that, other things held constant, for a given convert surrounded by the required rate of return, the___________ the time to matirity, the _______ the renovate surrounded by price.

a - longer & smaller
b - shorter and larger
c - longer and greater
d - shorter and smaller
e - c & d

Thanks for the sustain.

Answers:
Rate of return is considered for a length of time, as a result, the answer would be (e) both c&d

The rate of return is a function of the time.
You do not inevitability to grasp interest rates. You simply inevitability to know how to solve logic problems.

If longer is smaller, after shorter is larger.
If shorter is smaller, later longer is larger.
If longer is larger, next shorter is smaller.
If shorter is larger, after longer is larger.

So, a and b show matching point as respectively other, and c and d scrounging duplicate point as respectively other.
If a or b be correct, next they both would be.
Same for c and d.
It can not be one and just one of a, b, c, or d. If any of these is correct, later 2 of these are correct.

So it must be e.

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