Use the Table for the Question(s)below

question 66

Multiple Choice

Use the table for the question(s) below.
Consider the following four bonds that pay annual coupons:
-Which of the four bonds is the least sensitive to a one percent increase in the YTM?

• A)Bond A
• B)Bond B
• C)Bond C
• D)Bond D

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or associations, such as attractiveness or celebrity endorsement, rather than logical argumentation.

Attributions

Inferences that people make about the causes of events, others' behavior, or their own behavior.

Foot-In-The-Door Phenomenon

A tactic that involves getting a person to agree to a small request to increase the chances they will agree to a larger request later.