Given the Face Value and Maturity of a Zero- Coupon

question 46

Multiple Choice

Given the face value and maturity of a zero- coupon bond, a rise in the yield implies that the purchase price will:

• A) remain unchanged, because there are no coupons.
• B) fall.
• C) remain unchanged, up until the day it matures.
• D) rise.

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Definitions:

Fails An Exam

The occurrence of not achieving a passing grade or mark on an academic evaluation.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.

Hostility

An emotion or behavior characterized by anger, unfriendliness, or opposition towards others.