An Increase in a Bond's Yield to Maturity Results in a Price

question 25

Multiple Choice

An increase in a bond's yield to maturity results in a price decline that is ________ the price increase resulting from a decrease in yield of equal magnitude.

• A)greater than
• B)equivalent to
• C)smaller than
• D)The answer is uncertain

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Definitions:

Individualism

Giving priority to personal goals rather than to group goals; emphasizing values that serve the self, such as feeling good, striving for personal distinction and recognition for achievement, and asserting independence.

Interdependence

The mutual reliance between two or more entities, where each is dependent on the other for certain needs or outcomes.

Independence

The state of being self-reliant and free from external control or support.

Emphasize Individual

To give priority or special attention to the needs, rights, or characteristics of individual people.