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The Market Price of a Bond with 12 Years Until

question 40

Multiple Choice

The market price of a bond with 12 years until maturity and an annual coupon rate of 8% increased yesterday.Which one of these may have caused this price increase?


Definitions:

Fixed Ratio

A schedule of reinforcement where a response is only rewarded after a specified number of responses. It is often used in behavioral psychology.

Variable Interval

A reinforcement schedule where rewards are given after unpredictable time intervals, leading to moderate but steady response rates.

Fixed Interval

In operant conditioning, a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Partial Reinforcement Effect

The typical outcome of a variable ratio of reinforcement in which a slow rate of initial learning is coupled with resistance to extinction.

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