An Increase in Yield to Maturity Would Be Associated with an Increase

question 94

True/False

An increase in yield to maturity would be associated with an increase in the price of a bond.

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Definitions:

Perfectly Elastic

A situation in economics where a small change in price leads to an infinite change in quantity demanded or supplied.

Inelastic

Refers to a scenario where the supply or demand for a product or service shows little to no reaction to price fluctuations.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, with price typically on the vertical axis and quantity on the horizontal axis.

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.