The Yield Value of a 32^nd Is the Change Needed

question 9

Multiple Choice

The yield value of a 32^nd is the change needed in which one of the following to cause a bond's price to change by 1/32^nd?

• A) current yield
• B) yield to maturity
• C) coupon rate
• D) call premium
• E) call date

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Definitions:

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly, disabled, and families with children.

CPI

A metric known as the Consumer Price Index tracks the average price changes in a selected assortment of consumer items and services like medical care, transportation, and food, adjusting for their relative significance.

Price Inflation

The rate of growth in the overall price levels for goods and services, cutting down on purchasing capacity.

Real Price

The cost of a product or service once inflation has been taken into account, showing its true ability to purchase.