A Medical Practice Invests Money in a Five-Year Treasury Note

Multiple Choice

A medical practice invests money in a five-year treasury note with a 3% interest rate. Three years later, the practice needs money and sells the note. Which of the following will most reduce the sale value of the treasury note?

A) Newly issued five-year treasury notes with 2% interest rates
B) Newly issued two-year treasury notes with 4.5% interest rates
C) A 1% increase in the prime rate
D) A 1% fall in the prime rate