To Achieve the Maximum Price Impact from an Estimated Interest

question 12

Multiple Choice

To achieve the maximum price impact from an estimated interest rate decrease, a bond buyer should purchase bonds with relatively:

• A) high coupon rates and long maturities.
• B) high coupon rates and short maturities.
• C) low coupon rates and long maturities.
• D) low coupon rates and short maturities.

---

Definitions:

Counterproductive Work Behavior

Actions by employees that are intended to harm the organization or its members.

Downsizing

Downsizing is the process of reducing the size of a company by eliminating staff positions, often to cut costs or improve efficiency.

Project Sabotage

The act of deliberately destroying or hindering a project's success through mismanagement, obstruction, or intentional errors.

Non-participative Management

A management style where decision-making is centralized with little to no input from subordinate employees, limiting their participation in organizational processes.