Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) The lower the price of a bond, relative to its face value, the lower the interest rate.
• B) The lower the price of a bond, relative to its maturity, the lower the interest rate.
• C) The higher the price of a bond, relative to its face value, the higher the interest rate.
• D) The lower the price of a bond, relative to its face value, the higher the interest rate.

---

Definitions:

Demand Curve

An illustrated chart depicting the correlation between a product's price and the amount of it consumers want to buy at that price level.

Marginal Cost

The spending necessary to produce an extra unit of a product or service.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields.

Life Cycle

The series of stages through which something (such as a living being, a product, or a project) goes from its beginning to its end.