Which One of the Following Increases the Sensitivity of the Bond

question 57

Multiple Choice

Which one of the following increases the sensitivity of the bond prices?

• A)Increase in maturity
• B)Decrease in maturity
• C)Decrease in yield to maturity
• D)Increase in coupon payment

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Definitions:

Dividend Elimination

The process of removing the effects of dividends paid by subsidiaries to the parent from consolidated financial statements to avoid double counting.

Deferred Tax Asset

An accounting term for taxes that have been accrued but not yet paid, potentially reducing future tax obligations.

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount, recognized as an expense.