A Rise in the Price of a Bond Causes the Yield

question 62

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, fall if it's a long-term bond.

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Definitions:

Deviance

Behaviors or actions that deviate from societal norms or expectations.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Capitalist System

An economic and social system in which trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Deviant Behavior

Actions or conduct that deviate from societal norms and expectations, often eliciting negative sanctions.