As the Price of an Existing Bond Increases

question 39

Multiple Choice

As the price of an existing bond increases,

• A)The current yield decreases.
• B)The par value decreases.
• C)The coupon rate decreases.
• D)There is increased risk that the U.S.Treasury will default on the bond.

Comprehend the significance of risk of loss provisions and how they apply in different scenarios.

Grasp the distinctions and applications of the UCC's Articles 2 and 2A regarding sales and leases of goods, respectively.

Understand the role of the merchant in transactions under UCC.

Recognize the UCC's flexibility in dealing with omitted or ambiguous contract terms.

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Definitions:

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Kitty Genovese

Kitty Genovese was a young woman whose 1964 murder in New York City became famous due to the widely reported (though later questioned) lack of intervention by numerous witnesses.

Reciprocal Altruism

A behavior in which an organism acts in a manner that temporarily reduces its fitness while increasing another organism's fitness, with the expectation that the action will be reciprocated in the future.

Reciprocity

A mutual exchange of privileges or interactions between two parties, where each party provides benefits to the other with a sense of obligation.