-Refer to Exhibit 2-6

question 114

Multiple Choice

-Refer to Exhibit 2-6.Which graph depicts the result of a decrease in the unemployment rate?

• A) (1)
• B) (2)
• C) (3)
• D) (4)
• E) none of the above

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Definitions:

Term To Maturity

The time remaining until a debt instrument, such as a bond or loan, is due to be repaid.

Strip Bond

A debt security that has had its periodic interest payments removed, trading only on the principal amount and offering a final payment at maturity.

Par Value

Par value is the nominal or face value of a bond, share, or coupon as stated by the issuer.

Coupon Payments

Regular interest payments made to bondholders over the life of a bond.