A 1% Decline in Yield Will Have the Least Effect

question 69

Multiple Choice

A 1% decline in yield will have the least effect on the price of the bond with a _________.

• A) 10-year maturity, selling at 80
• B) 10-year maturity, selling at 100
• C) 20-year maturity, selling at 80
• D) 20-year maturity, selling at 100

Recognize how stress is viewed in the context of major life events versus daily hassles.

Understand different perspectives on stress as a stimulus, a response, and a transaction.

Describe the effects of stress on health and behavior.

Understand the concept of consciousness and how it is affected by external stimuli.

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Definitions:

Profitability Index

Profitability Index is a financial metric that calculates the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Benefit-Cost Perspective

A method of evaluating projects or decisions by comparing the benefits they will generate to the costs required to implement them.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The today's worth of a future sum or cash flows series, based on a predetermined rate of return.