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All Else Being Equal, an Increase in the Yield to Maturity

Question 1

Multiple Choice

All else being equal, an increase in the yield to maturity of a bond will result in:


A) an increase in the market price of the bond.
B) a greater interest rate price risk on a long-term bond than on a short-term bond.
C) an increase in the maturity value of the bond.
D) a decrease in the rate of return at which the cash flows from the portfolios can be reinvested.
E) a lower risk of suffering losses in the market values of the bond portfolios.

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