Multiple Choice
You hold a $1,000 bond that has an interest rate of 5 percent.If comparable interest rates rise to 10 percent, and you decide to sell this bond, the price you receive will be
A) $1,000.
B) $500.
C) $2,000.
D) You will not be able to sell the bond since it only pays 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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