Suppose That a Bond Is Issued at Its Par Value

question 47

Multiple Choice

Suppose that a bond is issued at its par value or face value.If market interest rates rise after the issue, the price of the bond will likely:

• A)rise significantly above its par value.
• B)rise slightly above its par value.
• C)remain equal to its par value.
• D)fall below its par value.
• E)rise or fall, depending on the bond's maturity.

---

Definitions:

Rocky Mountain

A region in North America extending from northern Canada to New Mexico, known for its majestic landscapes and rugged mountains.

Spotted Fever

A type of bacterial infection transmitted by ticks, characterized by fever, headache, and a rash that can resemble spots on the skin.

Typhus

A group of infectious diseases caused by Rickettsia bacteria, transmitted by lice, fleas, mites, or ticks, characterized by fever, headache, rash, and often delirium.

Rickettsiae

A genus of bacteria that are the causative agents of various diseases, including typhus and rickettsialpox, and are typically transmitted by lice, fleas, or ticks.