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

---

Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed in the business within a year or within the operating cycle.

Operating Expenses

Expenses incurred through normal business operations, such as salaries, rent, utilities, and office supplies, which are not directly tied to the production of goods or services.

Sales Revenue

Sales Revenue is the income received by a company from its sales of goods or the provision of services, before any costs or expenses are deducted.

Gross Profit Rate

The ratio of gross profit to net sales, representing the efficiency with which a company uses its resources to produce goods and services.