An Equal Decrease in All Bond Interest Rates

question 105

Multiple Choice

An equal decrease in all bond interest rates

• A)increases the price of a five-year bond more than the price of a ten-year bond.
• B)increases the price of a ten-year bond more than the price of a five-year bond.
• C)decreases the price of a five-year bond more than the price of a ten-year bond.
• D)decreases the price of a ten-year bond more than the price of a five-year bond.

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Definitions:

Severance Pay

Compensation provided to an employee upon termination of employment, often based on length of service or the terms of their employment contract.

Profit Sharing

A company policy where employees receive a portion of the company's profits in addition to their regular compensation.

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another, such as an employer for their employees.

Spare Time

The time that someone has free from their employment or other obligations, often used for relaxation or personal activities.