When Interest Rates Move Up,bond Prices Tend to

question 83

Multiple Choice

When interest rates move up,bond prices tend to

• A) move down.
• B) stay about the same.
• C) move up.
• D) move up,but only if the company is making a profit.
• E) there is no general pattern of movement.

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Definitions:

Implied Covenant

An obligation between parties that is not explicitly stated in a contract but is presumed to exist to facilitate the contract's purpose and ensure fairness.

Good Faith

Conducting oneself with honesty, fairness, and sincerity in dealings or transactions, without the intention to deceive or defraud.

Mortgage Loan

A loan secured by the collateral of specified real estate property, where the borrower is obliged to pay back with a predetermined set of payments.

Duty To Buy

An obligation, usually legal or contractual, to purchase a specific product or service.