A Person Blows Across the Top of One Arm of a U-Tube

question 12

Multiple Choice

A person blows across the top of one arm of a U-tube partially filled with water.The water in that arm:

• A)rises slightly
• B)drops slightly
• C)remains at the same height
• D)rises if the blowing is soft but drops if it is hard
• E)rises if the blowing is hard but drops if it is soft

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, taking into account its purchase price, interest payments, and terminal value.

Zero-coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a deep discount to their face value, maturing at par.

Treasury Bill

A Treasury Bill (T-Bill) is a short-term government debt obligation backed by the Treasury Department with a maturity of one year or less.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.