Which of the Following Does Not Affect the Market Price

question 85

Multiple Choice

Which of the following does not affect the market price of an outstanding bond issue?

• A)Fluctuations in the current market rate of interest.
• B)The credit rating of the issuing corporation.
• C)The price at which the bonds were originally issued.
• D)The length of time remaining until the bonds' maturity date.

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Definitions:

Interest Rates

The cost of borrowing money, often expressed as a percentage of the amount borrowed.

National Debt

The complete figure representing the debt a national government holds from borrowing, which is still outstanding.

Recessionary Gap

The difference between the actual level of GDP and the potential GDP that could be produced if all resources were fully employed, indicating an economy is not reaching its full output potential.

Fiscal Policy

Government decisions on taxation and spending to influence the economy, aiming to manipulate demand, inflation, and economic activity.