Which of the Following Will Reduce the Yield to Maturity

question 35

Multiple Choice

Which of the following will reduce the yield to maturity from what the investor calculated at time of purchase?

• A) Increasing interest rates; bonds held to maturity
• B) Decreasing interest rates; bonds held to maturity
• C) Stable interest rates; bonds sold before maturity
• D) Increasing interest rates; bonds sold before maturity

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Definitions:

Consumption

The use of goods and services by households, an activity that provides utility to consumers and drives demand in the economy.

Borda Count

A voting system where voters rank options in order of preference, and options are awarded points based on their rank position in each vote.

Candidates

Individuals who are considered for a position, role, or opportunity, often in the context of elections, job openings, or competitions.

Voters

Individuals who are eligible and participate in an election process to choose representatives or make decisions in referenda.