Details of this Paper

If the level of interest rates increases,

Description

solution


Question

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.

 

Paper#24356 | Written in 18-Jul-2015

Price : $22
SiteLock