As Interest Rates Consistently Decline Over a Specific Period, the Market

question 10

Multiple Choice

As interest rates consistently decline over a specific period, the market price of a bond you own would likely ____ over this period. (Assume no major change in the bond's default risk.)

• A)consistently increase
• B)consistently decrease
• C)remain unchanged
• D)change in a direction that cannot be determined with the above information

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