Multiple Choice
A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest rate of the economy was also 5 percent. Today you read in the newspaper that the interest rate in the economy decreased to 3 percent. You are holding a bond that is:
A) more desirable to other investors.
B) less desirable to other investors.
C) not desirable at all.
D) desirable to you.
Correct Answer:

Verified
Correct Answer:
Verified
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