Assume That the Required Yield to Maturity on a Consol

question 46

Multiple Choice

Assume that the required yield to maturity on a consol bond increases from 6% to 12%.What is the impact on the consol bond's duration?

• A)As there are no intervening cash flows between issue and maturity, the duration will always equal the bond's maturity.
• B)As interest rates rise, the duration of consol bonds falls.
• C)As interest rates rise, the duration of consol bonds rises.
• D)There will be no impact on the bond's duration.

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Definitions:

Field Diameter

The visible area observed through the microscope lens at a particular magnification.

Total Magnification

Total magnification refers to the combined magnifying power of an optical instrument, such as a microscope, calculated by multiplying the magnification of the objective lens by the magnification of the eyepiece.

Gland's Width

The measurement of a gland's size across its widest point.

Working Distance

The distance between the objective lens of a microscope and the specimen being observed when in focus.