An Investor Who Expects Declining Interest Rates Would Maximize Her

question 32

Multiple Choice

An investor who expects declining interest rates would maximize her capital gain by purchasing a bond that has a ________ coupon and a ________ term to maturity.

• A) low; long
• B) high; short
• C) high; long
• D) zero; long

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Definitions:

Acquired Building

A building that has been purchased or obtained by a company or organization through purchase or other means of acquisition.

Appraised

The act of determining the value of an asset, typically by a professional appraiser, based on its characteristics and the market conditions.

Malpractice

Failure by a professional to meet the standards of conduct, performance, or ethics in their job, often resulting in harm to clients or patients.

Elements

Fundamental substances that consist of atoms of only one kind and cannot be broken down or converted into another substance by chemical means.