Question: If the yield on a bond is rising, all else in the market remaining constant: Its price is rising Its risk of default is rising

If the yield on a bond is rising, all else in the market remaining constant:

Its price is rising

Its risk of default is rising

Its maturity value is declining

There is no change in its price

Two years ago Red Bricks Ltd. bought a parcel of land for $200,000 and spent $40,000 laying a foundation for a new factory. Work was stopped because of a recession. Now that the economy has improved, Red Bricks is considering starting the expansion again. The latest numbers suggest it can complete construction using 1 million of its own bricks that cost $0.50 to make but could have been sold for $0.75 each.

For project analysis the land and bricks represent, respectively: 11) ______

A) Opportunity cost and sunk cost

B) Sunk cost and opportunity cost

C) None of these

D) Capital investment and working capital

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