If the Globe and Mail Showed That the Price of a $1,000

question 95

Multiple Choice

If the Globe and Mail showed that the price of a $1,000 par-value bond increased by +6 from the previous day, what happened to yield to maturity?

• A)It fell
• B)It rose
• C)It stayed the same
• D)Can't tell

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Definitions:

Majority Rule

A decision rule that selects alternatives which have a majority, that is, more than half the votes.

Logrolling

The practice of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation.

Public Choice

A field of economics that applies economic methods to the study of political and administrative decision-making.

Bureaucratic Waste

Inefficiencies and wasted resources resulting from the cumbersome procedures, redundant paperwork, and unnecessary red tape often associated with large administrative systems.