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The Higher the Yield to Maturity on a Bond, the Closer

question 45

True/False

The higher the yield to maturity on a bond, the closer to par the bond will trade.


Definitions:

Business Ethics

The principles and standards that determine acceptable conduct in business organizations.

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, and social responsibility.

Stock Value

The monetary amount that a share of a specific stock is considered to be worth in the marketplace.

Dodd-Frank Wall Street Reform

A comprehensive set of financial regulations passed in 2010 in response to the 2008 financial crisis, aimed at reducing risk in the financial system.

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