Which of the Following Statements About Bonds Is True

question 53

Multiple Choice

Which of the following statements about bonds is true?

• A) Bond interest rates fall with increased default risk.
• B) Bond interest rates and default risk are not related.
• C) Bond prices rise with increased default risk.
• D) Bond prices rise with increased interest rates.
• E) Bond interest rates rise with increased default risk.

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Definitions:

Crowd

A large group of people gathered together, typically in a disorganized or unruly way.

Prosocial

Behavior that is intended to benefit others, including acts of kindness, sharing, and cooperating.

Antisocial

Behavior that opposes the societal norms, exhibiting disregard for the well-being of others.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or expectations.