All Else Constant,as the Market Price of a Bond Increases

question 7

Multiple Choice

All else constant,as the market price of a bond increases the current yield _____ and the yield to maturity _____

• A)increases; increases.
• B)increases; decreases.
• C)decreases; decreases.
• D)decreases; increases.
• E)remains constant; increases.

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Definitions:

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An accounting framework that considers all the direct and indirect costs associated with acquiring and using a product or system over its entire life cycle.

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