The Relationship Between a Bond's Price and the Yield to Maturity

question 92

Multiple Choice

The relationship between a bond's price and the yield to maturity

• A) changes at a constant level for each percentage change of yield to maturity.
• B) is an inverse relationship.
• C) is a linear relationship.
• D) a and b.

---

Definitions:

Burritos

A type of Mexican and Tex-Mex cuisine that consists of a wheat flour tortilla wrapped or folded into a cylindrical shape to completely enclose a filling.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it's a critical concept in determining optimal output level.

Prices

The cost in terms of money expected, required, or given for acquiring something.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.