When Interest Rates Rise,the Price of Bonds

question 7

Multiple Choice

When interest rates rise,the price of bonds:

• A) Increases
• B) Decreases
• C) Stays the same
• D) can be determined.

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Definitions:

Daily Demand

The total requirement or desire for a product or service on a daily basis.

Computers

Electronic devices designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results.

Expected Value

The sum of all possible values each multiplied by its probability of occurrence.

Binomial Distribution

A probability distribution that models the number of successes in a fixed number of independent Bernoulli trials with the same probability of success.