Which One of the Following Must Be Equal for Two

question 30

Multiple Choice

Which one of the following must be equal for two bonds if they are to have similar changes in their prices given a relatively small change in bond yields?

• A)coupon payment
• B)time to maturity
• C)market price
• D)duration
• E)current yield

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Foreign Currency Transaction

A transaction that involves the exchange of currencies or the undertaking of financial obligations denominated in a currency other than the entity’s functional currency, requiring conversion and possibly leading to foreign exchange gains or losses.

Spot Rate

The current market price of a financial instrument or commodity available for immediate purchase and delivery.

Receivable

An amount owed to a company by its customers or other parties for goods or services delivered.