An Increase in Interest Rates Will Help Increase the Future

Multiple Choice

An increase in interest rates will help increase the future value of a portfolio because the cash flows produced by the portfolio:

A) will increase the maturity value of the bond.
B) can be reinvested at higher rates of return.
C) can be used to recall high-rate bonds.
D) will generate cash to pay future coupon interest.
E) will decrease the yield to maturity of the bond.