If you hold a bond at a time when market interest rates are increasing, you will find that the bond's value has
a. remained the same since the interest payment remains constant
b. increased
c. increased only if the market interest rate exceeds the interest rate payable on the bond
d. declined because you will receive a lower price when you sell the bond
e. increased only if the interest payable on the bond exceeds the market interest rate
D
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In 2050 it is estimated that the world's most populous country will be:
a. Indonesia b. Japan c. India d. Brazil
If the production of paper causes economic damage to a community, allowing the market to set the price of paper equal to the private marginal cost of producing paper will
a. generate less than the optimal quantity of paper produced b. generate more than the optimal quantity of paper produced c. generate an equilibrium price that is higher than the price associated with the market's most efficient level of output d. cause some but not all paper producers to go out of business e. benefit society because of externalities generated by the production