With Respect to Bonds, When Interest Rates Increase

question 112

Multiple Choice

With respect to bonds, when interest rates increase:

• A)the coupon rate also increases.
• B)the coupon rate remains unchanged.
• C)the price of the bond rises.
• D)the price of the bond remains unchanged.

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Definitions:

Unique Traits

Characteristics or features that distinguish an individual or species from others.

Adaptive Trait

A characteristic of an organism that has been favored by natural selection and increases the fitness of the individual in its environment.

Phenotypically Different

Exhibiting differences in physical and physiological traits as a result of variations in genetic expression or environmental influences.

Species Diversity

A measure of diversity within an ecological community that incorporates both the number of species present and their relative abundance.