If an Investor Buys a High Coupon Bond, and Rates

question 19

True/False

If an investor buys a high coupon bond, and rates then fall, the investor has "locked up" that high yield as a realized yield.

---

Definitions:

Silicon Chips

Small pieces of semiconductor material, typically silicon, used in the manufacturing of electronic circuits and devices.

Quota Rent

The difference between the demand price and the supply price at the quota limit; this difference, the earnings that accrue to the license-holder, is equal to the market price of the license when the license is traded.

Domestic Demand

The total demand for goods and services within a country, including both consumer and governmental purchases.

Calculators

Electronic devices or software used to perform calculations, ranging from simple arithmetic to complex mathematical operations.