Which of the Following Will Increase the Yield on a Bond

question 43

Multiple Choice

Which of the following will increase the yield on a bond?

• A)a reduction principal
• B)an increased risk of default
• C)an increase in the bond's price
• D)a reduced risk of default
• E)none of the above

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Definitions:

Motivation

A psychological force that drives individuals to achieve goals and fulfill needs.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into existence, relatedness, and growth categories.

Process Theories

Are motivation theories that focus on how people become motivated and what they are motivated to do rather than on what motivates them.