When the Market Price of a Bond Falls, Ceteris Paribus

question 46

Multiple Choice

When the market price of a bond falls, ceteris paribus, then

• A)the market interest rate rises.
• B)the term to maturity of the bond decreases.
• C)the yield on that bond also falls.
• D)the term to maturity of the bond increases.
• E)the yield on that bond rises.

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