While Bond Prices Fluctuate

question 36

Multiple Choice

While bond prices fluctuate,

• A)yields are constant
• B)coupons are constant
• C)the spread between yields is constant
• D)short-term bond prices fluctuate more

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Definitions:

Accounting Equation

The fundamental principle of accounting that states that assets equal liabilities plus owners' equity, serving as the foundation for double-entry bookkeeping.

Liability

Debts or financial duties a business is responsible for paying back to other entities, which require settling by transferring economic resources over a period.

Cash

Money in the form of coins or banknotes, including the balance of bank accounts.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period of time.