Suppose a Bond’s Price Is Expected to Increase by 5

question 6

Multiple Choice

Suppose a bond’s price is expected to increase by 5% if its market discount rate decreases by 100 basis points. If the bond’s market discount rate increases by 100 basis points, the bond price is most likely to change by:

• A) 5%.
• B) less than 5%.
• C) more than 5%.

Describe the principles of altruism and the motivations behind altruistic behavior.

Explain the concept of conformity and the conditions that heighten it.

Understand the phenomenon of groupthink and its implications on decision making.

Recognize the effects of group size and composition on individuals' willingness to help.

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Definitions:

Sex/Gender Distinction

The differentiation between 'sex', typically referring to biological differences, and 'gender', which refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Binary Construction

A conceptual framework that divides things into two mutually exclusive categories, often used to describe simplified distinctions in society, such as male/female or right/wrong.

Egalitarian

Pertaining to the principle that all people are equal and deserve equal rights and opportunities.

False Dichotomy

A logical fallacy that presents two opposing options as the only possibilities, when in fact more options exist.