What happens when the interest rate on newly issued bonds increases?
a. The price of previously issued bonds with the lower rate decreases but still is higher than its face value.
b. The price of previously issued bonds with the lower rate does not change as the face value has not changed.
c. The price of previously issued bonds with the lower rate decreases to less than its face value.
d. The price of previously issued bonds with the lower rate increases to more than its face value.
c. The price of previously issued bonds with the lower rate decreases to less than its face value.
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If an economic change lowers the production cost of a commodity but does not reduce its market price, economic value will be created
Indicate whether the statement is true or false
Related to the Economics in Practice on page 239: According to the Economics in Practice, there is evidence suggesting that parents who hold proportionately more equities in their investment portfolios have children
A. who are generally more risk averse. B. who are generally less risk averse. C. who invest similarly. D. choose to not invest at all.