When Market Interest Rates Increase,existing Bonds

question 35

Multiple Choice

When market interest rates increase,existing bonds:

• A)are more likely to default on coupons.
• B)pay higher coupons.
• C)have a higher income generated by coupons.
• D)record capital gains.

---

Definitions:

Self-efficacy

The belief in one's abilities to succeed in specific situations or accomplish a task.

Behavior Change

The process of transforming one's actions and attitudes towards healthier habits, often key in improving personal well-being and health outcomes.

Overcoming Obstacles

The process or act of resolving or surpassing barriers or difficulties to achieve a goal.

Transtheoretical Model

A theory of behavior change that evaluates an individual's readiness to act on a new healthier behavior, and provides strategies or processes to guide the individual.