Other Things the Same,bonds Are Likely to Have Higher Interest

question 161

Multiple Choice

Other things the same,bonds are likely to have higher interest rates if they have

• A)tax exemptions and short terms.
• B)tax exemptions and long terms.
• C)no tax exemptions and short terms.
• D)no tax exemptions and long terms.

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Definitions:

Consumer Price Index

An economic indicator that measures the average change over time in the prices paid by consumers for a basket of goods and services.

Basket's Cost

The total expense of a selected set of goods and services over a period, often used to measure inflation.

Base Year

A reference year used for comparative financial analysis in which indices or prices are normalized to 100.

Consumer Price Index

A scale that quantifies the average alteration over time in the prices that urban buyers allocate for a specific group of consumer products and services.