The Difference Between the Yield on Local Government Bonds and the Yield

question 45

Multiple Choice

The difference between the yield on local government bonds and the yield on corresponding domestic government treasury bonds is known as

• A)sovereign spread.
• B)the foreign discount rate.
• C)interest expense.
• D)the risk free rate.
• E)interest rate risk.

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Definitions:

Total Revenue

The total revenue a company earns from selling its goods or services before deducting any expenses or costs.

Chocolate

A sweet, usually brown, food preparation of roasted and ground cacao seeds, often flavored, and available as a solid or liquid.

Unit Elastic

A situation in which the quantity demanded or supplied changes by an equal percentage as the change in price.

Price Elasticity

A measure of how much the quantity demanded of a product changes in response to a change in the product's price.