Bonds A, B, and C All Have a Maturity of 15

question 81

Multiple Choice

Bonds A, B, and C all have a maturity of 15 years and a yield to maturity of 9%.Bond A's price exceeds its par value, Bond B's price equals its par value, and Bond C's price is less than its par value.Which of the following statements is CORRECT?

• A) Bond A has the most interest rate risk.
• B) If the yield to maturity on the three bonds remains constant, the prices of the three bonds will remain the same over the next year.
• C) If the yield to maturity on each bond increases to 8%, the prices of all three bonds will decline.
• D) Bond C sells at a premium over its par value.
• E) If the yield to maturity on each bond decreases to 6%, Bond A will have the largest percentage increase in its price.

Know how to manage security and privacy settings of a Windows 10 system.

Understand the basics of networking and the connectivity options Windows 10 supports.

Understand the impact of state ballot-access laws on third-party and independent candidates.

Recognize the historical evolution of political parties in the United States.

---

Definitions:

Price Setting

The process by which a company determines the selling price of its products or services.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Auditors

Independent professionals who examine the financial records and business transactions of a company to ensure accuracy and compliance with accounting standards.

Self-Regulation

The process whereby an industry or profession monitors and enforces its own standards and practices without external oversight.