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Which of the following bonds will have the smallest percentage decrease in price if all required returns increase by 1%?
A. 20-year 10% coupon bond
B. 1-year 10% coupon bond
C. 20-year zero-coupon bond
Answer: B
Explanation:
A bond's time to maturity is positively related to the elasticity of the bond's price with respect to changes in its required return. A bond's coupon rate is inversely related to the elasticity of the bond's price with respect to changes in its required return.
NEW QUESTION: 2
Blue Berry Corporation, one of the biggest fruit traders in Canada, has the biggest competitor, Red Cherry Corporation. Blue Berry uses a web application that is developed by using java technologies, whereas Red Cherry's web application uses non-Java technologies. Blue Berry plans to share business sensitive, transactional data between the two systems by integrating them in a loosely coupled manner.
Which technology should be used to this?
A. JCA
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B. It is a term for a Remanufactured cartridge.
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D. It is a term for a 100% new cartridge.
Answer: B
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Aalk - 2014-05-05 16:45:18
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