Consider Two Bonds, a and B

question 22

Multiple Choice

Consider two bonds, A and B. Both bonds presently are selling at their par value of $1 000. Each pay interest of $120 annually. Bond A will mature in 5 years while Bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 14%, ________.

• A)both bonds will increase in value but Bond A will increase more than Bond B
• B)both bonds will increase in value but Bond B will increase more than Bond A
• C)both bonds will decrease in value but Bond A will decrease more than Bond B
• D)both bonds will decrease in value but Bond B will decrease more than Bond A

Differentiate between roles, status hierarchies, belief systems, and groupthink within group settings.

Describe communication strategies for ensuring understanding within groups.

Explain the stages of group development and activities predominant in each stage.

Analyze the concepts and influence of group cohesion on group dynamics.

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Definitions:

Ingroup

Ingroup refers to a social group to which a person psychologically identifies as being a member.

Outgroup

A social group to which an individual does not identify or belong, often viewed with bias or prejudice.

Minimal Groups

Experimental groups created with minimal conditions for group membership, used to study the basic conditions required for discrimination or group identification to occur.

Tajfel

A reference to Henri Tajfel, a social psychologist known for his work on social identity theory and intergroup dynamics.