Market yield and the coupon rate of bond? constant

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Reference no: EM131984754

1. Holding the market yield and the coupon rate of a bond? constant, as the time to maturity? increases: ?(Select from the? drop-down menu.)

A. The value of the bond will fluctuate less for any change in market yields.

B. The sum of the present value of the coupon payments represents a larger share of the total bond value than the present value of the principal.

C. The discounted face value of the bond represents a larger percentage of the? bond's total value than the total present value of the interest payments.

D. The default risk on corporate bonds decreases.

E. The discount factor used to calculate the present value of the principal increases.

2. The President's Budget requested $177 million for DoD's REDBIRD Program. The House Armed Services Committee has decided to grant REDBIRD $152 million, while the Senate Armed Services Committee has decided to grant REDBIRD $169 million. The Authorization Conference has agreed to grant REDBIRD $165 million. DoD should now appeal to:

a. The Authorization Conference for $177 million

b. The House Appropriations Committee for $177 million

c. The Senate Appropriations Committee for $169 million

d. No one, since the appeal process is over

Reference no: EM131984754

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