What Happens to the Price of Bonds If Interest Rates

question 31

Multiple Choice

What happens to the price of bonds if interest rates go up?

• A) The price of bonds goes up.
• B) The price of bonds stays the same.
• C) The price of bonds goes down.
• D) The direction of price change depends on the shape of the yield curve.

---

Definitions:

Law Reviews

Scholarly journals focusing on legal issues, typically edited by students at law schools.

Supreme Court Decision

A final ruling handed down by the highest court in a jurisdiction, setting a precedent and often resolving important legal questions.

Federal District Court Decision

An official judgment or ruling handed down by a federal district court, the trial-level courts in the U.S. federal court system.

Distant Library

A library services system that allows users to access resources and materials remotely, often online.