WGU C214 CONCEPTUAL QUESTION 2 WITH
CORRECT ANSWERS 2025
26.QWhatQfeatureQdistinguishesQbondsQfromQstock?Q-QCORRECTQANSWERQ-
PeriodicQcashQpaymentQmustQbeQmadeQtoQinvestor
27.QWhichQbondQfeatureQisQnotQaQlegalQobligationQcitedQinQtheQIndenture?Q-QCORRECTQANSWERQ-Price
28.QYieldQonQaQbondQcanQbestQbeQdescribedQas:Q-QCORRECTQANSWERQ-
RateQofQincreaseQinQvalueQofQinvestment
29.QWhenQisQtheQbondQyieldQequalQtoQtheQcouponQrate?Q-QCORRECTQANSWERQ-AtQparQprice
30.QForQaQsemi-annualQpayQbond,QwhichQinputsQmustQbeQadjusted?Q-QCORRECTQANSWERQ-N,QI/Y,Q&QPMT
31.QWhichQdescribesQtheQrelationshipQbetweenQpriceQandQyieldQ-QCORRECTQANSWERQ-
PriceQincreaseQ=QyieldQdecrease
YieldQincreaseQ=QpriceQincrease
32.QWhichQdoesQnotQaffectQaQbond'sQrequiredQyield?Q-QCORRECTQANSWERQ-ExpectedQgrowthQrate
33.QAQbond'sQdurationQcauses:Q-QCORRECTQANSWERQ-MarketQrisk
34.QIfQaQbond'sQpriceQisQatQaQdiscount,QthenQ-QCORRECTQANSWERQ-
BondQyieldQisQmoreQthanQtheQcouponQrate
35.QWhatQisQtheQdifferenceQbetweenQcommonQandQpreferredQstock?Q-QCORRECTQANSWERQ-
PreferredQstockQdividendsQareQfixed
36.QIfQratingQagenciesQdowngradeQaQbondQfromQAAAQtoQBBB,QwhatQhappens?Q-QCORRECTQANSWERQ-
TheQbondQpriceQdecreases
CORRECT ANSWERS 2025
26.QWhatQfeatureQdistinguishesQbondsQfromQstock?Q-QCORRECTQANSWERQ-
PeriodicQcashQpaymentQmustQbeQmadeQtoQinvestor
27.QWhichQbondQfeatureQisQnotQaQlegalQobligationQcitedQinQtheQIndenture?Q-QCORRECTQANSWERQ-Price
28.QYieldQonQaQbondQcanQbestQbeQdescribedQas:Q-QCORRECTQANSWERQ-
RateQofQincreaseQinQvalueQofQinvestment
29.QWhenQisQtheQbondQyieldQequalQtoQtheQcouponQrate?Q-QCORRECTQANSWERQ-AtQparQprice
30.QForQaQsemi-annualQpayQbond,QwhichQinputsQmustQbeQadjusted?Q-QCORRECTQANSWERQ-N,QI/Y,Q&QPMT
31.QWhichQdescribesQtheQrelationshipQbetweenQpriceQandQyieldQ-QCORRECTQANSWERQ-
PriceQincreaseQ=QyieldQdecrease
YieldQincreaseQ=QpriceQincrease
32.QWhichQdoesQnotQaffectQaQbond'sQrequiredQyield?Q-QCORRECTQANSWERQ-ExpectedQgrowthQrate
33.QAQbond'sQdurationQcauses:Q-QCORRECTQANSWERQ-MarketQrisk
34.QIfQaQbond'sQpriceQisQatQaQdiscount,QthenQ-QCORRECTQANSWERQ-
BondQyieldQisQmoreQthanQtheQcouponQrate
35.QWhatQisQtheQdifferenceQbetweenQcommonQandQpreferredQstock?Q-QCORRECTQANSWERQ-
PreferredQstockQdividendsQareQfixed
36.QIfQratingQagenciesQdowngradeQaQbondQfromQAAAQtoQBBB,QwhatQhappens?Q-QCORRECTQANSWERQ-
TheQbondQpriceQdecreases