A Three-Year Bond with a Current Yield of 10% Per

question 55

Multiple Choice

A three-year bond with a current yield of 10% per annum and a duration of 2.76 years,when compared with a four-year bond with a current yield of 12% per annum and duration of 3.43 years,will _______ when interest rates rise.

• A) have a greater fall in price
• B) have a smaller fall in price
• C) have the greater interest rate exposure
• D) not alter in price

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Definitions:

Worker Interests

Worker interests encompass the economic, social, and professional needs and priorities of employees, including fair wages, safe working conditions, and job security.

Enterprise Contract

A contractual agreement between businesses, or between a business and an individual, that typically involves provision of goods or services.

Business Decision Making

The process by which business leaders and managers choose among alternative strategies or actions to achieve organizational goals.

Justice for Janitors

A social movement and union campaign initiated by the Service Employees International Union (SEIU) focused on improving wages, benefits, and working conditions for janitors through collective bargaining.