Two Wires a and B Are Made of the Same

question 16

Multiple Choice

Two wires A and B are made of the same material and have the same diameter.Wire A is twice as long as wire B.If each wire has the same potential difference across its ends,which one of the following statements is true concerning the current in wire A?

• A)The current is one-fourth that in B.
• B)The current is four times that in B.
• C)The current is equal to the current in B.
• D)The current is half as much as that in B.
• E)It is twice as much as that in B.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments of principal and interest.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, representing the weighted average of the time until a bond's cash flows are received.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, where one basis point is equal to 1/100th of 1%.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, adjusted to account for changes in yield.