A Rise in the Price of a Bond Causes the Yield

question 19

Multiple Choice

A rise in the price of a bond causes the yield of the bond to

• A)rise.
• B)fall.
• C)remain unchanged.
• D)rise if it's a short-term bond and fall if it's a long-term bond.

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Definitions:

Reputation

The widespread belief about someone or something based on past behavior, achievements, or characteristics.

Inoculate

To introduce a vaccine or antigenic material into a body to stimulate immunity against a specific disease.

Attacks

Aggressive actions or tactics aimed at harming, undermining, or defeating someone or something.

Repeating

The act of duplicating or stating something again or multiple times, which can be used as a tactic for emphasis or clarification.