The Rate of Return on a Bond Can Be Negative

question 51

Multiple Choice

The rate of return on a bond can be negative if market yields

• A) rise.
• B) fall.
• C) become negative.
• D) Rates of return cannot be negative.

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Definitions:

Outsourcing

The practice of hiring external vendors or companies to perform services or create goods that were traditionally done internally.

Competitive Implications

The potential impacts or consequences that actions of one business can have on its competitors in the market.

Trade Restrictions And Quotas

Measures implemented by governments to control the amount and type of goods that can be imported or exported, affecting international trade.

Political Risk

The risk of losses due to changes in a country's political landscape or government policies that can affect investments or operations.