Bonds A,B,and C All Have a Maturity of 10 Years

question 75

Multiple Choice

Bonds A,B,and C all have a maturity of 10 years and a yield to maturity of 7%.Bond A's price exceeds its par value,Bond B's price equals its par value,and Bond C's price is less than its par value.None of the bonds can be called.Which of the following statements is CORRECT?

• A) If the yield to maturity on each bond decreases to 6%,Bond A will have the largest percentage increase in its price.
• B) Bond A has the most price risk.
• C) If the yield to maturity on the three bonds remains constant,the prices of the three bonds will remain the same over the next year.
• D) If the yield to maturity on each bond increases to 8%,the prices of all three bonds will decline.
• E) Bond C sells at a premium over its par value.

Differentiate between the components of love as identified by Sternberg.

Recognize the phenomena related to the psychology of compliance and obedience.

Identify and understand the steps involved in bystander intervention.

Differentiate between the characteristics of collectivist and individualistic cultures in relation to conformity and group behavior.

---

Definitions:

Settlement Date

The date on which a trade or transaction must be finalized, with the buyer delivering payment and the seller delivering the asset.

European Put

A type of option contract that gives the holder the right, but not the obligation, to sell a specified asset at a predetermined price before or at the option's expiration date, but only exercisable in Europe.

Specified Price

A definite price point set in a contract or agreement, often referring to the predetermined price in financial transactions.

Expiration Date

The date on which an option, right, or warrant expires, or the date when a perishable product is no longer considered safe or effective to use.