A Month Ago, You Bought a One-Year Bond with a Value

question 193

Multiple Choice

A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest rate of the economy was also 5 percent. Today you read in the newspaper that the interest rate in the economy increased to 6 percent. You are holding a bond that is:

• A)highly desirable to other investors.
• B)less desirable to other investors.
• C)not desirable at all.
• D)desirable to you.

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Definitions:

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

State Action

Activities or actions taken by government bodies or officials, covered by legal and constitutional protections.

Property Right

Legal rights to possess, use, and dispose of assets or properties.

State University

A public university that is primarily funded and operated by a state government.