What Effect,if Any,will a Decrease in Interest Rates Have on Bond

question 43

Multiple Choice

What effect,if any,will a decrease in interest rates have on bond values?

• A)Bond values will increase
• B)Bond values will decrease
• C)Bond values may increase or decrease,depending on the maturity,quality,and coupon rate
• D)None of the above

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Definitions:

Mudstone

A rock composed of consolidate mud (silt, clay, or especially a combination of the two).

Transgression

A geological event where the sea advances over land due to rising sea levels or subsiding land, leading to the deposition of marine sediments over terrestrial ones.

Marine Sedimentary Facies

Specific areas within sedimentary deposits in marine environments characterized by a distinct set of physical, chemical, and biological attributes.

Limestone

A sedimentary rock composed mainly of calcite, formed by the accumulation of shell, coral, algal, and fecal debris in shallow seas.