When Market Interest Rates Increase After a Bond Is Issued,the

question 30

Multiple Choice

When market interest rates increase after a bond is issued,the:

• A) face value of the bond increases.
• B) market value of the bond increases.
• C) market value of the bond decreases.
• D) bond price is at a premium.

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Definitions:

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, in economic, social, cultural, or other contexts.

Attract Customers

Strategies or practices aimed at drawing in potential clients or customers to a business or product.

Lowest Price

The smallest amount of money that can be paid for a product or service in the market.

Market Capitalization

The total value of a company's outstanding shares of stock, calculated by multiplying the current stock price by the total number of shares.