Multiple Choice
As interest rate change, the price of an issued bond also changes. The change in price has an inverse relationship to changes in interest rates (if one rises, the other falls) . If new bond issues are paying a higher interest rate than existing bonds, investors will not purchase existing bonds unless:
A) The bond is discounted
B) The new bond prices fall
C) The new issue is finished
D) The interest rate declines
Correct Answer:
Verified
Correct Answer:
Verified
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