All Else Constant,as the Market Price of a Bond Increases

question 7

Multiple Choice

All else constant,as the market price of a bond increases the current yield ________ and the yield to maturity ________.

• A)decreases; decreases
• B)increases; decreases
• C)increases; increases
• D)decreases; increases
• E)remains constant; increases

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Definitions:

Flow

The psychological state of being completely immersed and fully engaged in an activity, often leading to optimal performance and enjoyment.

Challenging

Describes something that is demanding and tests one's abilities, often in a way that is stimulating or rewarding.

Gratitude

A feeling of thankfulness and appreciation, often in response to receiving help or kindness from others.

Virtue

Moral excellence and righteousness; qualities or traits that embody the best of human character.