How are Treasury bond prices affected when the interest rate falls?
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.
b
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Which of the following statements is true of marginal analysis?
A) Marginal analysis is a tool used in optimization in levels. B) Marginal analysis compares the consequences of doing one more step of something. C) Marginal analysis of alternatives will mostly give an outcome different from optimization in levels. D) Marginal analysis involves the calculation of total net benefits of all the available alternatives.
Which of the following would likely be involved in a new bond offering?
A) a commercial bank B) an investment bank C) a broker D) a dealer
With the financial revolution in the late twentieth century and the resultant increase in the importance and complexity of risk management, it became essential for divisionalized firms to decentralize risk assessment
Indicate whether the statement is true or false
If there is an increase in the future marginal product of capital in a small open economy, it causes the current account to ________ and saving to ________.
A. fall; rise B. fall; remain unchanged C. rise; remain unchanged D. rise; rise