How are Treasury bond prices affected when the interest rate rises?
a. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must decrease.
b. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must increase.
c. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must decrease.
d. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must increase.
a
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A full-time student who is not working is categorized as
A) unemployed. B) employed. C) not in the labor force. D) frictionally unemployed. E) a discouraged worker.
What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?
a. capital b. consumption c. investment d. costs