Because of a Change in the Required Rate of Return

question 8

Multiple Choice

Because of a change in the required rate of return from 11 percent to 13 percent, the bond price of a zero-coupon bond will fall from $1,000 to $860. Thus, the bond price elasticity for this bond is

• A)0.77.
• B)-0.77.
• C)-0.90.
• D)-1.06.
• E)none of the above.

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Definitions:

Rites of Enhancement

Traditional or ceremonial acts that improve or elevate the status of individuals within a community or organization.

Company Awards Ceremonies

Formal events organized by a business to recognize and celebrate the achievements and contributions of its employees.

Ball Corporation

A multinational company known for its production of aluminum packaging for beverages, personal care, and household products, as well as aerospace technology.

Ball Corporation

A corporation known for its production of cans and other containers, and its involvement in aerospace manufacturing and technologies.