If a Bond's Value Rises Above Its Face Value During

question 106

Multiple Choice

If a bond's value rises above its face value during its life, interest rates have

• A) increased.
• B) decreased.
• C) stayed the same.
• D) There is no relationship between bond prices and interest rates.

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Definitions:

Interval Scale

A type of scale used in measurements that allows for the comparison of differences between objects or events, but not the ratio between them, as it lacks a true zero point.

Ratio

A mathematical relationship between two numbers indicating how many times the first number contains the second.

Statistics

is the science of collecting, analyzing, interpreting, and presenting data.

Interpreting Information

The process of making sense of or assigning meaning to data, texts, or situations.