If Interest Rates in the Overall Economy Increase, What Will

Multiple Choice

If interest rates in the overall economy increase, what will happen to the market value of a corporate bond with a fixed interest rate?

A) The value of the bond will increase.
B) The bond is worthless.
C) The value of the bond will decrease.
D) The value of the bond will not change.
E) It is impossible to determine if the bond's value will increase or decrease.