If the Payment Stream of a Bond Remains the Same

question 125

Multiple Choice

If the payment stream of a bond remains the same and the price of the bond goes down, the:

• A) effective yield is unchanged.
• B) effective yield rises.
• C) effective yield decreases.
• D) bond is reissued to reflect the higher interest rate.
• E) bond is reissued to reflect the lower interest rate.

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Definitions:

Language Development

The process by which individuals acquire the ability to perceive, produce and use words to understand and communicate.

Biology

The scientific study of life and living organisms, including their structure, function, growth, evolution, and distribution.

Early Childhood

A development period from birth to the age of 8 years, which is fundamental for cognitive, social, emotional, and physical development.

Biological Factors

refer to the physiological and genetic influences that impact an individual's health, behavior, and personality.