Which of the Following Will Generally Result in a Higher

question 100

Multiple Choice

Which of the following will generally result in a higher price for a bond?

• A) Higher coupon rate.
• B) Longer maturity.
• C) Shorter maturity.
• D) Higher required rate of return.

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Definitions:

Preferred Dividends

Regular payments made to preferred shareholders out of the company's profits before any dividends are paid to common shareholders.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning more weight to some numbers and less to others.

Earnings Per Share

A financial metric that measures the amount of a company's profit allocated to each outstanding share of its common stock.

Outstanding Common Stock

Shares of a corporation's stock that have been issued and are in the hands of investors, but not repurchased by the company.