If Interest Rates in the Overall Economy Decrease, What Will

question 91

Multiple Choice

If interest rates in the overall economy decrease, what will happen to the market value of a corporate bond with a fixed interest rate?

• A)The value of the bond will increase.
• B)The bond is worthless.
• C)The value of the bond will decrease.
• D)The value of the bond will not change.
• E)It is impossible to determine if the bond's value will increase or decrease.

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Definitions:

Improve Productivity

The process of enhancing the efficiency and effectiveness of operations, typically by optimizing resources and workflow to produce more output with less input.

Long-linked Technology

Refers to the sequential process technology where the production process consists of a series of steps, each of which must be completed before the next can begin.

Interdependent Tasks

Tasks in which the output, performance, or results of one task depend on the input or performance of another.

Break-even Analysis

A financial calculation that determines the point at which revenues equal costs, resulting in neither profit nor loss.