Assume That the Required Yield to Maturity on a Consol

question 39

Multiple Choice

Assume that the required yield to maturity on a consol bond increases from 6 per cent to 12 per cent. What is the impact on the consol bond's duration?

• A) As there are no intervening cash flows between issue and maturity, the duration will always equal the bond's maturity.
• B) As interest rates rise, the duration of consol bonds falls.
• C) As interest rates rise, the duration of consol bonds rises.
• D) There will be no impact on the bond's duration.

Apply mathematical skills to solve problems related to budget constraints and purchasing power.

Analyze the impact of price changes on consumer choices and budget allocation.

Understand the principle of opportunity cost through trade-offs in consumption choices.

Apply principles of microeconomics to practical scenarios involving budget constraints and choices.

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Definitions:

Humanistic

Pertaining to a perspective within psychology that emphasizes the study of the whole person and the uniqueness of human experience and potential.

Experiential

Relating to or derived from experience or the process of learning through direct participation or observation.

Generational Motivation

The concept that different generations within the workforce are motivated by varied factors, influenced by their unique social, economic, and cultural experiences.

Genetic Coding Hypothesis

A theory suggesting that specific genes are responsible for determining particular traits or behaviors in organisms.