The Changes in Market Value for a Long-Term Treasury Bond

question 32

Multiple Choice

The changes in market value for a long-term Treasury Bond occur from

• A) reinvestment-rate risk.
• B) market risk.
• C) interest-rate risk.
• D) unique risk.

---

Definitions:

Inventory

The total of all goods available for sale or use, including raw materials, work-in-progress, and finished goods.

Perpetual Inventory

A system of accounting for inventory that records the sale or purchase of inventory immediately through computerized systems.

Periodic Inventory

An accounting method where inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory.

Transactions

The act of buying, selling, or exchanging goods, services, or financial assets in the business world.