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
You might also like to view...
The Fed has adopted an interest rate target for most of the time since World War II
Indicate whether the statement is true or false
Find the Marginal Rate of Technical Substitution for the following production functions:
a. q = L0.5 K0.5 b. q = L0.5 + K0.5 c. q = min{K,L} d. q = L + K
Global corporations in general are:
A. as difficult to regulate as domestic corporations. B. less difficult to regulate than domestic corporations. C. beyond the scope of government regulation at any level. D. more difficult to regulate than domestic corporations.
The federal funds rate is determined in which of the following markets?
A) the market for U.S. treasury securities B) the money market C) the bond market D) the market for central bank money E) none of the above