A Change in Market Conditions Causes the Market Price of a Bond

question 30

Multiple Choice

A change in market conditions causes the market price of a bond to change because of changes in the bond's:

• A)coupon rate.
• B)current (interest) yield.
• C)yield to maturity.
• D)principal value.
• E)maturity value.

---

Definitions:

OPEC

The Organization of the Petroleum Exporting Countries, an intergovernmental organization aimed at coordinating and unifying petroleum policies among its member countries.

Bottled Water

Bottled water is drinking water packaged in plastic or glass bottles, and it may or may not be carbonated.

Equilibrium Quantity

Equilibrium quantity is the amount of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Wage Subsidy

A financial incentive provided by the government to businesses to encourage the hiring of more employees or to reduce unemployment.