Choose the Statement That Is Incorrect About Treasury Bonds

question 2

Multiple Choice

Choose the statement that is incorrect about Treasury bonds.

• A)If the price of a Treasury bond rises, other things remaining the same, the interest rate falls because the interest payment is a smaller percentage of the Treasury bond price.
• B)The price of a Treasury bond and the interest rate on a Treasury bond are determined simultaneously.
• C)If the demand for Treasury bonds increases, the interest rate on the Treasury bond rises.
• D)The interest rate is a percentage of the price of the Treasury bond.
• E)When the interest rate on a Treasury bond rises, the supply of Treasury bonds increases.

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