The Relationship Between a Bond's Price and the Yield to Maturity

question 83

Multiple Choice

The relationship between a bond's price and the yield to maturity

• A) changes at a rate equal to the change in yield.
• B) is linear.
• C) is inverse.
• D) is relative.

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Definitions:

Tube-shaped

Describing an object or structure that is long, hollow, and cylindrical.

Water Vascular System

A unique hydraulic system used by echinoderms, such as starfish, for locomotion, food and water transportation, and respiration.

Exoskeleton

A rigid external covering for the body in some invertebrate animals, especially arthropods, providing both support and protection.

Bony Tissue

Hard tissue that makes up the skeletal bones in vertebrates, providing support, protection, and enabling mobility.