If a Bond's Market Price Decreases, Its

question 45

Multiple Choice

If a bond's market price decreases, its

• A) yield-to-maturity increases.
• B) coupon rate decreases.
• C) yield-to-maturity decreases.
• D) coupon rate increases.

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Definitions:

Deductibility

Refers to the extent to which an expense can be subtracted from gross income to reduce taxable income.

Self-Employed Individuals

People who work for themselves, not as employees of another, and are responsible for their own taxes and benefits.

Deduction Limitations

Restrictions placed on the amount that can be deducted from taxable income, often varying by the type of deduction and the taxpayer's income level.

Alimony Deduction

A tax deduction previously allowed for payments made under a divorce or separation agreement to a spouse or ex-spouse, phased out after the 2018 tax year for new agreements.