The Market Value of a Bond Is _____

question 23

Multiple Choice

The market value of a bond is _____

• A)directly related to the rate of interest on the bond.
• B)inversely related to the rate of interest on the bond.
• C)not related to the rate of interest on the bond.
• D)directly related to the maturity date of the bond.
• E)inversely related to the maturity date of the bond.

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Definitions:

Asset Revaluation

The process of adjusting the book value of an asset to reflect its current market value.

Capital Balances

refers to the amount of money stakeholders have invested in a company, recorded in the equity section of the balance sheet.

Income

The money received, especially on a regular basis, for work or through investments.

Capital Balances

Represents the amount of money that owners have invested in a company minus any withdrawals they have made from the company.