The Yield Value of a 32nd Is the Change Needed

question 29

Multiple Choice

The yield value of a 32nd is the change needed in which one of the following to cause a bond's price to change by 1/32nd?

• A)current yield
• B)yield to maturity
• C)coupon rate
• D)call premium
• E)call date

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Definitions:

Risk

Exposure to danger, harm, or loss, often considered in financial contexts such as investments or business ventures.

Trade Credit

A financial arrangement where a buyer is allowed to purchase goods or services and pay for them at a later date.

Rate of Interest

The percentage of a loan amount charged for borrowing money, expressed as an annual percentage of the principal.

Cash Discount

A reduction in the price paid for goods or services if payment is made in cash or within a certain time period.