When We Refer to Changes in the Required Yield, It

question 28

Multiple Choice

When we refer to changes in the required yield, it is convenient to measure a change in yield in terms of what market participants refer to as ________.

• A) a basis modification rather than a yield modification.
• B) a yield modification rather than in terms of a basis modification.
• C) a percentage change rather than a basis point.
• D) a basis point rather than in terms of a percentage change.

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Definitions:

Vertical Communication

Messages that are communicated according to an organization’s chain of command by flowing both upward and downward.

Organizations

Entities comprising multiple people working together towards common objectives, structured to coordinate their activities and resources.

Communication Habits

Patterns or practices of behavior in how individuals communicate with others, which can be beneficial or detrimental.

Poor Listening

The lack of active engagement or attention when someone else is speaking, often resulting in misunderstandings or miscommunications.