The Relationship Between a Bond's Sales Price and the Yield

question 76

Multiple Choice

The relationship between a bond's sales price and the yield to maturity

• A) changes at a constant level for each percentage change of yield to maturity.
• B) is an inverse relationship.
• C) is a linear relationship.
• D) changes at a constant level for each percentage change of yield to maturity and is an inverse relationship.

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Definitions:

Functional

Relating to the purpose or role that something is designed or expected to fulfill.

Deviance

Behaviors or actions that deviate from societal norms or expectations, which can be formal (laws) or informal (customs).

Émile Durkheim

A foundational French sociologist known for his extensive work on social solidarity, the division of labor, and the role of religion in society, among other contributions.

Strain Theory

A sociological theory that suggests individuals may engage in deviant behavior when they experience a discrepancy between societal goals and the means available to achieve those goals.