A 1% Decline in Yield Will Have the Least Effect

question 87

Multiple Choice

A 1% decline in yield will have the least effect on the price of a bond with a ________.

• A) 10-year maturity, selling at 80
• B) 10-year maturity, selling at 100
• C) 20-year maturity, selling at 80
• D) 20-year maturity, selling at 100

---

Definitions:

Nuclear Family

A family unit consisting of two parents (mother and father) living with their children, considered the smallest and most basic social unit in many societies.

School-Age Children

Children in the age range typically required to attend school, generally from about 5 to 18 years old.

Preconventional Level

Refers to the first level of moral reasoning in Kohlberg's theory, characterized by understanding morality based on consequences and personal benefit.

Moral Development

The process by which individuals learn and apply moral codes, values, and understandings of right and wrong across their lifespan.