A bond's price and its yield to maturity are inversely related because
A) discounting future payments at a higher rate reduces the present value of the payments.
B) discounting future payments at a higher rate increases the present value of the payments.
C) an increase in the yield to maturity will lower a bond's coupon rate and hence its price.
D) a fall in a bond's price will lower its par value and hence its yield to maturity.
A
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Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually
A) beat the market in the next time period. B) beat the market in the next two subsequent time periods. C) beat the market in the next three subsequent time periods. D) do not beat the market in the next time period.
According to Figure 2.5, the United States civilian unemployment rate in June 2013 was ________
A) 5.0% B) 22.1% C) 7.8% D) 8.5% E) none of the above
A cease-and-desist order issued by the FTC is
a. not appealable to the courts b. an order that a firm stop engaging in some activity c. a warning that profits are too high in this business d. an order that some activity meets with antitrust approval e. an order that the business recall some of their products because of defects
Recessions typically cause the unemployment rate to ________ and the inflation rate to ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall