A Bond with 10 Years Until Maturity,an 8% Coupon,and an 8

question 118

Multiple Choice

A bond with 10 years until maturity,an 8% coupon,and an 8% yield to maturity increased in price to $1,107.83 yesterday.What apparently happened to interest rates?

• A) Rates increased by 2.0%.
• B) Rates decreased by 2.0%.
• C) Rates increased by .72%.
• D) Rates decreased by 1.5%.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by speeding up the heart rate, increasing blood flow to muscles, and more.

Electrical Conduction

The flow of electrically charged particles across a conducting pathway.

Polygraph Tests

A type of examination that measures physiological responses to questions in order to determine the truthfulness of the answers provided.

Heart Rate

The count of heart pulsations within a specific time frame, usually measured in beats per minute (BPM).