A rise in the price of a bond causes the yield of the bond to
A. rise.
B. fall.
C. remain unchanged.
D. rise if it's a short-term bond, fall if it's a long-term bond.
Answer: B
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For a given supply curve, the deadweight loss from the imposition of a tax is smaller if demand is more elastic
Indicate whether the statement is true or false
Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution is $1200 a year. Assuming a six percent rate of return, their pension plan is said to be
A) fully funded. B) partly funded. C) unfunded. D) fully vested.
Why doesn't a competitive firm reduce its price below the industry price to increase sales?
The substitution effect isolates the change in the consumption of a good caused by:
A. the change in consumer preferences. B. the change in the market rate of substitution. C. the lower "real" income. D. None of the statements is correct.