Which of the Following Statements About Bonds Is True

question 53

Multiple Choice

Which of the following statements about bonds is true?

• A) Bond interest rates fall with increased default risk.
• B) Bond interest rates and default risk are not related.
• C) Bond prices rise with increased default risk.
• D) Bond prices rise with increased interest rates.
• E) Bond interest rates rise with increased default risk.

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Definitions:

Consensus

A general agreement or shared understanding among a group of people, often achieved through collective decision-making processes.

Laissez-faire Decision Making

A management style that involves a minimal amount of oversight and control, allowing individuals or groups to make decisions independently.

Reference Group

A social group that individuals use as a standard to evaluate themselves and their own behavior.

Class Reunions

Social gatherings where individuals who were part of the same academic graduating class come together to reminisce and catch up on life post-graduation.