The Market Price of a Bond with 12 Years Until

question 66

Multiple Choice

The market price of a bond with 12 years until maturity and an annual coupon rate of 8% increased yesterday.Which one of these may have caused this price increase?

• A)the bond's rating was downgraded.
• B)the issuing firm announced the next interest payment.
• C)the issuing firm announced that its annual earnings met investor expectations.
• D)market interest rates decreased.

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Definitions:

Copper

A metal used in electrical wiring and telecommunication cables due to its excellent electrical conductivity.

Fiber-Optic

Technology involving thin strands of glass or plastic that transmit data as pulses of light, allowing for high-speed internet and data communications.

Cable

A medium used for transmitting electrical signals, data, or power, often referring to telecommunications and networking infrastructure.

DSL

Digital Subscriber Line is a collective term for technologies that enable internet connectivity through the digital data transmission over local telephone network cables.