Which of the Following Bonds Will Be Most Sensitive to a Change

question 62

Multiple Choice

Which of the following bonds will be most sensitive to a change in interest rates if all bonds have the same initial yield to maturity?

• A)a 20-year bond with a $1 000 face value whose coupon rate is 7.4% APR paid semi-annually
• B)a 20-year bond with a $1 000 face value whose coupon rate is 5.8% APR paid semi-annually
• C)a 10-year bond with a $1 000 face value whose coupon rate is 5.8% APR paid semi-annually
• D)a 10-year bond with a $1 000 face value whose coupon rate is 7.4% APR paid semi-annually

Analyze the effects of taxes on the demand and supply of land.

Explain the relationship between interest rates, inflation, and real returns on investments.

Grasp the principles of loan interest calculations and the impact of interest compounding.

Recognize the implications of land supply inelasticity on the economy.

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HDMI Connection

A digital interface for transmitting audio and video data from an HDMI-compliant source to a compatible computer monitor, video projector, digital television, or digital audio device.

Resolution

The number of pixels shown on a monitor or the output of a printer.

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The maximum rate at which data can be transferred between the input/output devices and the processing unit of a computer, measuring the throughput or data transfer capacity of the connection.

Disk I/O Speed

Disk I/O speed refers to the speed at which data transfer occurs between a computer's permanent storage, like a hard drive or SSD, and the computer’s memory.