Relative to a Decrease in Interest Rates, an Increase in Rates

question 36

Multiple Choice

Relative to a decrease in interest rates, an increase in rates of the same size will produce:

• A) a larger percentage change in a bond's price.
• B) a smaller percentage change in a bond's price.
• C) the same sized change in a bond's price.
• D) no change in the bond's price since its coupon rate is fixed.

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Definitions:

Virtual Office

A venue (home, vehicle, hotel room, or even local coffee shop) where salespeople are able to conduct business with the help of technology.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, systems, and devices.

Gross Profit

The financial gain made after deducting the costs of goods sold from total sales revenue.

Electronic Calendar Management

The use of digital tools and software to organize, schedule, and manage appointments, meetings, and events.