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:

James-Lange Theory

A concept suggesting that emotions arise following physiological responses to occurrences.

Affect Emotion

The experience of feeling or emotion, which can influence perceptions, judgments, and behaviors.

Facial Feedback Hypothesis

The theory that suggests the movement and expressions of our face can influence our emotions.

Common-Sense View

The perspective that intuitions or beliefs held by the majority of people are correct, even without specialized knowledge or scientific evidence.