What Was the Effect of the Edict of Restitution in 1629

question 35

Multiple Choice

What was the effect of the Edict of Restitution in 1629?

• A) Gustavus Adolphus II of Sweden reacted to the edict by beginning the third phase of the Thirty Years' War.
• B) The Edict of Restitution ended the Thirty Years' War.
• C) The Edict of Restitution meant that Protestants received many substantial freedoms.
• D) The Edict of Restitution was the precursor to the Treaty of Westphalia.

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Definitions:

Convexity

A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes.

Modified Duration

A measure that estimates the price sensitivity of a bond to a one percent change in interest rates, adjusting for the changing yield to maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to changes in interest rates, typically expressed in years.