For a Specific Change in the Yield to Maturity

question 66

Multiple Choice

For a specific change in the yield to maturity

• A)the shorter the time until a bond matures, the greater will be the change in its price.
• B)the longer the time until a bond matures, the greater will be the change in its price.
• C)the longer the time until a bond matures, the greater will be the change in its par value.
• D)the shorter the time until a bond matures, the greater will be the change in its coupon rate.

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Definitions:

Expropriate

The act of a government taking private property for public use, usually with compensation to the owner.

Fee Simple Absolute

A type of freehold ownership where the owner has the maximum possible rights over the property, permitting them to use it, sell it, or bequeath it under the law.

Real Property

Land and anything permanently attached to the land, such as buildings, which can be contrasted with personal property.

Personal Property

Assets or belongings that are not permanently attached to, or part of, real estate.