Which of the Following Is True

question 109

Multiple Choice

Which of the following is true?

• A)the supply curve is downward sloping and demand curve is upward sloping.
• B)demand is downward sloping and supply is upward sloping.
• C)both the supply curve and the demand curve are downward sloping.
• D)both the supply curve and the demand curve are upward sloping.

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Definitions:

Maturity

Maturity is the date on which a financial obligation must be repaid or the final payment is due, marking the end of the obligation's life.

Annual Interest Payments

These are payments made to lenders or bondholders for the use of borrowed money, typically calculated annually based on the interest rate and principal amount.

Yield To Call (YTC)

The rate of interest earned on a bond if it is called. If current interest rates are well below an outstanding callable bond’s coupon rate, the YTC may be a more relevant estimate of expected return than the yield to maturity, since the bond is likely to be called.

Yield To Maturity (YTM)

The total return anticipated on a bond if the bond is held until its maturity date, taking into account both interest payments and the difference between the bond's current market price and its face value.