You Hold a Long-Term Bond Yielding 10

question 2

True/False

You hold a long-term bond yielding 10%. If interest rates fall before you sell the bond, you will sell at a higher price than if interest rates had been constant.
Since the interest rates on a bond are fixed, a decrease in yields available on similar bonds means that this bond is more desirable, and would therefore increase its price.

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Definitions:

Unary Operators

Operators that operate on a single operand to perform various operations like negation, increment, or decrement.

Operands

The entities on which operators perform operations in expressions, such as variables or values.

Period

A length or span of time characterized by a specific condition, activity, or event.

Terminate

To bring an activity, process, or operation to an end; in computing, it often refers to stopping a program or process.