What Would Cause a Corporate Bond with a $1,000 Face

Multiple Choice

What would cause a corporate bond with a $1,000 face value and a fixed interest rate of 7 percent to increase in value?

A) The bond receives a lower rating by Moody's or Standard & Poor's.
B) Overall interest rates in the economy increase.
C) The government places an interest ceiling on corporate bonds.
D) Overall interest rates in the economy decrease.
E) The corporation files for protection under the bankruptcy laws.