Multiple Choice
When the Bank of Canada's actions cause interest rates on newly-issued bonds to increase from 5% to 6%,the prices of existing bonds
A) increase.
B) decrease.
C) remain unchanged.
D) increase only if the coupon rate is less than 6%.
E) increase only if the coupon rate is greater than 6%.
Correct Answer:
Verified
Correct Answer:
Verified
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