Consider a 3-Year Bond with a Par Value of $1,000

question 57

Multiple Choice

Consider a 3-year bond with a par value of $1,000 and an 8% annual coupon.If interest rates change from 8 to 6% the bond's price will:

• A) increase by $51.54.
• B) decrease by $51.54.
• C) increase by $53.46.
• D) decrease by $53.46.

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Definitions:

Conscientiousness Dimension

One of the five major personality traits, describing individuals who are reliable, well-organized, self-disciplined, careful, and responsible.

Big Five

A psychological model outlining five broad dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Introverts

Individuals who tend to be more inward-turning, focusing on internal thoughts, feelings, and moods rather than seeking external stimulation.

Extraverts

Individuals who are outgoing, energetic, and thrive on social interaction, opposite of introverts.