If the level of interest rates increases, then the current value and price of a bond paying a fixed interest payment will
A) remain unchanged since its underlying value, the interest payment is fixed.
B) fall since new bonds offer higher rates.
C) rise since new bonds offer higher rates.
D) first rise then fall as bond investors calculate the effects of the change in rates.
B
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Post deregulation, airlines attempted to maintain their earlier profit levels by instituting price discrimination in such forms as advance purchase ticket restrictions and frequent-flyer mileage programs. These methods generally did not succeed in maintaining those profit levels
Indicate whether the statement is true or false
An increase in aggregate demand with no adjustment in monetary policy will result in:
A. no change in inflation. B. no change in potential output but higher inflation. C. an increase in potential output and higher inflation. D. a decrease in potential output and higher inflation.