Which of the Following Bonds Will Be Least Sensitive to a Change

question 32

Multiple Choice

Which of the following bonds will be least sensitive to a change in interest rates?

• A) a ten-year bond with a $2,000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semiannually
• B) a 15-year bond with a $5,000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annually
• C) a 20-year bond with a $3,000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannually
• D) a 30-year bond with a $1,000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR paid annually

Comprehend the implications of corporate personhood and the rights of corporations under the law.

Identify the critical legal documents in corporation formation and operation, such as articles of incorporation, bylaws, and operating agreements.

Analyze the consequences of failing to adhere to legal formalities in the incorporation process, including the concepts of de facto and de jure corporations.

Understand the concept of corporate veil and circumstances under which it can be pierced to hold shareholders personally liable.

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Definitions:

Trade

The exchange of goods, services, or both between parties in different countries or within the same country, enhancing economic efficiency and access to resources.

Skateboards

A skateboard is a small piece of wood in the shape of a surfboard with four wheels attached. It is used for the sport of skateboarding.

Tariff

A tax imposed by a government on imported or, less commonly, exported goods, often used to protect domestic industries from foreign competition.

Imports

Products or services that are imported from another country for the purpose of selling.