Consider the Price Paid for Debt Issued by the State

question 52

Multiple Choice

Consider the price paid for debt issued by the State of California. Which of the following would lead to a decrease in the value of State of California bonds?

• A) The State of California bonds are in small dollar amounts.
• B) The State of California bonds have a shorter maturity.
• C) The State of California experiences a fiscal crisis that makes it less likely it will be able to honor its interest payments.
• D) The State of California pays back its previous bonds ahead of schedule.

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Definitions:

NLF

The National Liberation Front (NLF) was a political organization with its military wing, the Viet Cong, that fought against the South Vietnamese government and its United States allies during the Vietnam War.

Troops Lose

indicates a situation where military forces suffer defeat or experience significant losses.

Tet Offensive

A major military campaign during the Vietnam War in 1968, conducted by the North Vietnamese forces and Viet Cong, marking a turning point in public perception of the war.

Eugene McCarthy

An American politician and senator who played a significant role in the anti-Vietnam War movement by challenging the incumbent President in the 1968 Democratic primary.