As the price of an existing bond increases,
A. The current yield decreases.
B. There is increased risk that the U.S. Treasury will default on the bond.
C. The coupon rate decreases.
D. The par value decreases.
Answer: A
Economics
You might also like to view...
In a balance of payments statement, the current account plus the financial account must equal the capital account
Indicate whether the statement is true or false
Economics
List the three possible ways the government can make adjustments, and the three possible ways the private sector can make adjustments, to an increase in the government's budget deficit
What will be an ideal response?
Economics