Assume Market Interest Rates Have Risen Substantially in the 5

question 19

Multiple Choice

Assume market interest rates have risen substantially in the 5 years since an investor purchased Treasury bonds that were offering a 6% return over their 15-year life.If the investor sells now,he or she is likely to realize a total return that is:

• A) greater than 6%.
• B) less than 6%.
• C) equal to 2%.
• D) equal to 6%.

---

Definitions:

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.

Threat

a potential cause of harm or adverse effect on someone or something.

Raise Request

A formal or informal petition for an increase in salary or wages.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals effectively and efficiently.