The Value of a 15-Year Bond Will Change ____ for a Given

question 27

Multiple Choice

The value of a 15-year bond will change ____ for a given change in the required rate of return than will the value of a 5 year bond.

• A) more
• B) less
• C) the same percentage
• D) exactly the same

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Definitions:

Macro-Incremental

This term is not widely recognized as a standard financial or economic term. NO.

Non-Cash Items

Expenses or incomes on a company’s financial statements that do not involve actual cash flow, such as depreciation or amortization.

Operating Cash Flow

The cash generated from the normal operations of a business, reflecting how well the company generates cash to pay its debt obligations and fund its operating expenses.

Sales Revenues

The income received by a company from its sales of goods or the provision of services.