When the Market Price of a Bond Falls,ceteris Paribus,then

question 114

Multiple Choice

When the market price of a bond falls,ceteris paribus,then

• A)the term to maturity of the bond increases.
• B)the term to maturity of the bond decreases.
• C)the yield on that bond rises.
• D)the yield on that bond also falls.
• E)the market interest rate rises.

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Definitions:

Accounts Receivable

Funds that customers have yet to pay to a business for the goods or services that have already been provided to them.

Accumulated Depreciation

The total depreciation of an asset up to a single point in time, reflecting its decreased value from wear and tear or obsolescence.

Matching Principle

An accounting principle that dictates that expenses should be recorded in the same period as the revenues they helped to generate.

Asset's Cost

Represents the total amount incurred to acquire an asset and make it operational, including purchase price and all other expenses necessary to get the asset into a usable state.