If the Market Price of a Bond Increases, Then

question 9

Multiple Choice

If the market price of a bond increases, then

• A) the yield to maturity decreases.
• B) the coupon rate increases.
• C) the yield to maturity increases.
• D) none of the above.

---

Definitions:

Sodium

A chemical element with the symbol Na, essential for many bodily functions, including the regulation of blood pressure and fluid balance.

Potassium

A chemical element with symbol K, essential for various cellular processes including the regulation of heartbeat and muscle function.

Tetrodotoxin

A potent neurotoxin found in pufferfish and some other marine species that blocks nerve conduction by inhibiting sodium ion channels.

Sodium Channels

Sodium channels are proteins in cell membranes that allow sodium ions to flow into or out of cells, playing vital roles in the generation and transmission of electrical signals in neurons and muscle cells.