When the Price of a Bond Decreases,all Else Equal,the Bond

question 53

Multiple Choice

When the price of a bond decreases,all else equal,the bond demand curve

• A)shifts right.
• B)shifts left.
• C)does not shift.
• D)inverts.

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Definitions:

Stated Value

A value that is assigned to a share of stock by the issuing company, which may bear no relation to its market value.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

No-Par Common Stock

Shares issued without a par value, meaning their value is determined by the market rather than a set face value.

Stated Value

The nominal value assigned by the company to its no-par stock, which becomes the legal capital per share.