A $5000 Bond with a Coupon Rate of 5

question 107

Multiple Choice

A $5000 bond with a coupon rate of 5.7% paid semiannually has ten years to maturity and a yield to maturity of 6.4%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

• A) The price of the bond will fall by $293.50.
• B) The price of the bond will fall by $352.20.
• C) The price of the bond will rise by $410.90.
• D) The price of the bond will rise by $293.50.

---

Definitions:

Person-centered Interviews

Interview techniques focusing on the interviewee, allowing them to express themselves freely and fully.

Self-reports

A method of data collection in which individuals provide information about themselves, often used in psychological assessments and research.

Guided Imagery

A therapeutic technique involving the directed visualization of calming and positive images to promote relaxation and healing.

Feelings And Attitudes

Emotional states or inclinations toward particular ideas, situations, or people.