Suppose You Purchase a $1,000 Bond That Bears an Interest

question 10

Multiple Choice

Suppose you purchase a $1,000 bond that bears an interest rate of 10 percent.What will happen if the interest rate goes to 20 percent?

• A)The market price of the bond will increase to $2,000.
• B)The market price of the bond will drop to $500.
• C)The return on the bond will double.
• D)The return on the bond will halve.

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Definitions:

Supply Chain Logistics

Overseeing the movement and storage of goods, services, raw materials, in-progress inventory, and final products from where they originate to where they are consumed.

Production Management

Production Management involves planning, coordination, and control of industrial processes to ensure that goods are produced efficiently, effectively, and at the right quality.

Value Proposition

A statement or promise that outlines how a product or service will add value, solve problems, or improve the situation for customers.

Capturing Value

The process by which companies retain a portion of the value provided to customers through pricing, service, or product features.