Multiple Choice
The statement that "Bond prices vary inversely with changes in the market interest rate" means that if the
A) market interest rate increases, the coupon interest rate will decrease.
B) coupon interest rate increases, then bond prices will go down.
C) market interest rate decreases, then bond prices will go up.
D) coupon interest rate increases, the market interest rate will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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