Choose the Statement That Is Incorrect About Treasury Bonds

Multiple Choice

Choose the statement that is incorrect about Treasury bonds.

A) If the price of a Treasury bond rises, other things remaining the same, the interest rate falls because the interest payment is a smaller percentage of the Treasury bond price.
B) The price of a Treasury bond and the interest rate on a Treasury bond are determined simultaneously.
C) If the demand for Treasury bonds increases, the interest rate on the Treasury bond rises.
D) The interest rate is a percentage of the price of the Treasury bond.
E) When the interest rate on a Treasury bond rises, the supply of Treasury bonds increases.