With Respect to Bonds,when Interest Rates Increase Typically

question 31

Multiple Choice

With respect to bonds,when interest rates increase typically:

• A) the coupon rate on existing bonds also increases.
• B) the coupon rate on existing bonds remains unchanged.
• C) bond prices also increase.
• D) bond prices remain constant.

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Definitions:

Food And Supplies

Items necessary for the preparation and service of food in industries such as catering or restaurants.

Net Operating Income

It is the total profit of a company after operating expenses are subtracted from total revenue but before interest and taxes are deducted.

Wages And Salaries

The compensation, including regular payments and benefits, paid to employees for their work or services.

Administrative Expenses

Overhead or general expenses related to the day-to-day running of a business, which do not directly tie to producing goods or services.