If You Purchase a 10 Year Bond Today with the Intention

question 161

Multiple Choice

If you purchase a 10 year bond today with the intention of selling it a year from today, you would like the yield to maturity to ____.

• A)equal the coupon rate
• B)not change
• C)increase
• D)decrease

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Definitions:

Herzberg's Motivator-Hygiene Model

A theory suggesting that job satisfaction and dissatisfaction arise from two different sets of factors: motivators that enrich an individual's job and hygiene factors that must be present to avoid dissatisfaction.

Hygiene Factors

Elements related to job environment such as salary, company policies, and working conditions, that can lead to dissatisfaction if not adequately addressed.

Job Characteristics Model

A theory that proposes that the nature of one's job or the characteristics of the task one undertakes can play a role in influencing job satisfaction and job performance.

Contextual Factors

Various elements within the environment that influence the situation or outcome.