A Transformer with 100 Turns on the Primary Side and 50

question 40

Multiple Choice

A transformer with 100 turns on the primary side and 50 turns on the secondary

• A) is a step-up transformer
• B) is a step-down transformer
• C) is a transformer that works on self-induction
• D) will have 100 times the current on the secondary side

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Definitions:

Term Structure

The relationship between interest rates or bond yields and different terms or maturities.

Duration

Duration is a measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, typically expressed in years.

Interest Rate Risk

The potential for investment values to change due to variations in the prevailing interest rates.

Coupon Rate

The annual interest rate paid by a bond's issuer to its bondholders, typically expressed as a percentage of the bond's face value.