A $5 000 Bond with a Coupon Rate of 6

question 82

Multiple Choice

A $5 000 bond with a coupon rate of 6.4% paid semi-annually has four years to maturity and a yield to maturity of 6.2%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

• A)fall by $40.49
• B)fall by $98.64
• C)rise by $84.46
• D)rise by $142.78

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Definitions:

Ideal Self

A person's conception of how they would like to be, embodying their goals, aspirations, and values.

Self-concept

An individual's understanding and evaluation of their own personality, competencies, and characteristics, shaping how they see themselves.

Actual Self

is an individual's perception of the self as it is, contrasted with the ideal self or the self that one believes others see.

Carl Rogers

A prominent American psychologist known for establishing the client-centered or person-centered therapy approach.