Consider a Bond Portfolio Manager Who Expects Interest Rates to Decline

question 84

Multiple Choice

Consider a bond portfolio manager who expects interest rates to decline and has to choose between the following two bonds.
Bond A: 10 years to maturity,5% coupon,5% yield to maturity
Bond B: 10 years to maturity,3% coupon,4% yield to maturity

• A) Bond A because it has a higher coupon rate.
• B) Bond A because it has a higher yield to maturity.
• C) Bond B because it has a lower coupon rate.
• D) Bond A or Bond B because the maturities are the same.
• E) None of the above.

Understand different types of questions and their applications in interviews.

Identify and describe the organization of interview questions and the rationale behind each organization method.

Recognize the importance and components of the opening, question-response, and closing phases of an interview.

Distinguish between various interview formats and contexts (e.g., board interviews, group interviews, employment interviews).

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Definitions:

Observational Learning

The process by which individuals learn new behaviors by observing and replicating the actions of others.

Social Learning

the acquisition of behaviors and skills through the observation of and interaction with others in a social context.

Negative Reinforcement

A technique used in behavior modification that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Respondent Behavior

A behavioral response that occurs naturally as a reaction to a specific stimulus, without the necessity of learning or prior experience.