A Company Has Two Outstanding Bonds with the Same Features,apart

question 64

Multiple Choice

A company has two outstanding bonds with the same features,apart from the maturity date.Bond A matures in five years,while bond B matures in 10 years.If the market interest rate changes by 5%:

• A) bond A will have the greater change in price.
• B) bond B will have the greater change in price.
• C) the price of the bonds will not alter.
• D) the price of the bonds will change by the same amount.

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Definitions:

Crowds

Large groups of people gathered together in a particular location, often sharing a common purpose or spontaneously forming.

Norms of Society

The unwritten rules and expectations that regulate the behavior of individuals within a group or society, contributing to social order and cohesion.

Collective Action

The action taken together by a group of people with the aim of achieving a common objective.

Lynch Mobs

Groups of people who take the law into their own hands to punish an alleged criminal, typically without a legal trial.