The Total Return on a 5 Year Bond with $10000

question 85

Multiple Choice

The total return on a 5 year bond with $10000 par value and an annual coupon rate of 6 percent will be most favourable if interest rates

• A)increase to 8 percent.
• B)decrease to 4 percent.
• C)increase to 7 percent.
• D)decrease to 5 percent.

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Definitions:

Hot and Cold Flashes

Sudden and intense feelings of heat or cold, often associated with hormonal changes, stress, or certain health conditions.

Sweating

The process of excreting fluid from the sweat glands of the skin as a means of regulating body temperature and expelling toxins.

Vomiting

is the forceful expulsion of the stomach's contents through the mouth.

Panic Attack

A sudden onset of intense fear or discomfort, accompanied by physical and psychological symptoms like heart palpitations, dizziness, and a feeling of unreality.