Which of the Following Is Not a Major Factor When

question 5

Multiple Choice

Which of the following is not a major factor when deciding to change automobiles?

• A)State of current car.
• B)Existing finances.
• C)Current car promotion.
• D)Attractiveness of new car.
• E)All of the above are major factors.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Modified Duration

Macaulay’s duration divided by 1 + yield to maturity. Measures interest rate sensitivity of bonds.

Macaulay Duration

A measure of the weighted average time until all cash flows from a bond are received, used to gauge a bond's interest rate sensitivity.