Which of the Following Is True with Regard to Bonds

question 62

Multiple Choice

Which of the following is true with regard to bonds?

• A) As the price of a bond falls, the interest rates rises.
• B) As the price of a bond rises, the interest rates rises.
• C) As the price of a bond falls, the interest rates remains unchanged.
• D) As the price of a bond falls, the interest rates falls.

---

Definitions:

Physical Substance

An attribute indicating that an asset has tangible form and can be perceived by the senses.

Copyright

A legal right granting the creator of an original work exclusive rights to its use and distribution, typically for a limited time.

Amortization Expense

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Useful Life

Useful life is the estimated duration of time that an asset is expected to be usable for the purpose it was acquired, often influencing depreciation calculations.