Which One of the Following Will Occur If a Bond's

question 10

Multiple Choice

Which one of the following will occur if a bond's discount rate is lowered?

• A)market price will increase
• B)coupon payment amount will decrease
• C)current yield will increase
• D)call premium will increase
• E)coupon rate will decrease

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Definitions:

Modern Plague

Refers to contemporary diseases or health crises that have widespread impact on public health, similar to the historical impact of the bubonic plague.

Inequality

The unequal distribution of resources, opportunities, rights, and power among individuals or groups in a society.

Poverty

A socioeconomic condition characterized by a lack of basic resources and financial means necessary for a minimum standard of living.

Globalization

The process by which businesses, technologies, or philosophies spread worldwide, leading to increased interconnectedness and interdependence among nations.