All Else Being Equal, an Increase in the Yield to Maturity

question 1

Multiple Choice

All else being equal, an increase in the yield to maturity of a bond will result in:

• A)an increase in the market price of the bond.
• B)a greater interest rate price risk on a long-term bond than on a short-term bond.
• C)an increase in the maturity value of the bond.
• D)a decrease in the rate of return at which the cash flows from the portfolios can be reinvested.
• E)a lower risk of suffering losses in the market values of the bond portfolios.

---

Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific domain or organization.

Aesthetic Aspects

Elements related to beauty or the appreciation of beauty, especially in art or design.

Symbolic Aspects

Elements that represent or signify ideas and concepts beyond their literal sense.

Graphic Art

Visual art forms that involve the creation of works primarily in a graphic medium, such as drawing, engraving, or printing.