An Ideal Time to Buy Bonds with Distant Maturities Is

question 34

Multiple Choice

An ideal time to buy bonds with distant maturities is when the investor expects future yield curves to be

• A) upward sloping.
• B) downward sloping.
• C) flat.
• D) unstable.

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Definitions:

Authorized

Refers to the official approval or empowerment to carry out a specific action or set of actions.

Debenture Bond

A type of debt instrument not secured by physical assets or collateral but backed only by the issuer's creditworthiness and general reputation.

Unsecured Bond

A bond that is not backed by collateral or specific assets and is solely based on the issuer's creditworthiness.

Face Value

The nominal or original value of a security or currency as stated by the issuer, not necessarily its market value.