The Statement That "Bond Prices Vary Inversely with Changes in the Market

question 75

Multiple Choice

The statement that "Bond prices vary inversely with changes in the market interest rate" means that if the

• A) market interest rate increases the contractual interest rate will decrease.
• B) contractual interest rate increases then bond prices will go down.
• C) market interest rate decreases then bond prices will go up.
• D) contractual interest rate increases the market interest rate will decrease.

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Definitions:

Application Program

A program created to execute a series of related functions, tasks, or activities aimed at providing advantages to the user.

Large Network

A vast interconnected set of computers, servers, and other hardware devices that enable communication and data exchange across multiple locations.

Search Engine

A set of programs that searches the Web for specific words (or keywords) you wish to query (or look for) and that then returns a list of the websites on which those keywords are found.

Asynchronous Communication

A method of communication in which data can be transmitted intermittently rather than in a steady stream, allowing the sender and receiver to not be synchronized.