If interest rates rise in general, then the price of a corporate bond would A) rise...
If interest rates rise in general, then the price of a
corporate bond would
A) rise
B) fall
C) not change because bond prices are fixed.
D) possibly rise or fall depending on the riskiness of the
bond.
Homework Answers
The answer is B - fall
The answer is B , since when the interest rates rise the bond price falls and vice versa since . this is because when the interest rates rise, investors find it more attractive to invest elsewhere, as a result, to compensate for the lower interest rate on the bond the prices of the bond adjust downward accordingly leading to a fall in price of the bond
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If interest rates rise in general, then the price of a
corporate bond would
A) rise...
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The choices for the blanks, in order, are: fall/rise narrowing/widening higher/lower low/high rise/fall decreasing/increasing Corporate-Bond Issuers...
The choices for the blanks, in
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fall/rise
narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
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Can you explain to me why the answer would be B instead of A? I do...
Can you explain to me why the answer would be B instead of A?
I do not get it..
When there is too much demand for bond, shouldn’t it’s price
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The choices for the blanks, in
order, are:
fall/rise
narrowing/widening
higher/lower
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rise/fall
decreasing/increasing
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Can you explain to me why the answer would be B instead of A?
I do not get it..
When there is too much demand for bond, shouldn’t it’s price
increase?
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