Interest Rates and the Price of Old or Existing Bonds

question 113

Multiple Choice

Interest rates and the price of old or existing bonds are

• A) directly related.
• B) independent of each other.
• C) inversely related.
• D) sometimes directly related and sometimes inversely related.
• E) There is not enough information to answer the question.

---

Definitions:

Oil Barrels

A standard unit of measure for crude oil and other petroleum products, equivalent to 42 U.S. gallons.

Foreign Competition

The presence and influence of international companies in a domestic market, which can affect local businesses.

Foreign Wages

This refers to the rates of pay for workers in countries other than the home country, significant in discussions of outsourcing, labor markets, and international competitiveness.

U.S. Workers

Individuals working in the United States, encompassing all sectors and types of employment.