If a Bond's Value Rises Above Its Face Value During

question 88

Multiple Choice

If a bond's value rises above its face value during its life,interest rates have

• A) increased.
• B) decreased.
• C) stayed the same.
• D) there is no relationship between bond prices and interest rates.

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Definitions:

Stimulus Response

A concept in psychology that describes how an individual reacts to a stimulus; it's the basic unit of learning and behavior.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any prior learning or conditioning.

Concrete Operational

A stage in Piaget’s theory of cognitive development where children gain the ability to think logically about concrete events.

Intuitive

Relating to or using one's intuition, which involves understanding or knowing something instinctively without the need for conscious reasoning.