Multiple Choice
If you initially pay $1,000 for a bond with an annual interest rate of 5 percent, but then the market interest rate falls to 4 percent
A) the market price of the bond is still $1,000.
B) the bond's annual interest payment remains equal to $50.
C) the market price of the bond has increased.
D) the market price of the bond has decreased.
Correct Answer:
Verified
Correct Answer:
Verified
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