Which of the Following Describes the Relationship Between Changes in Market

question 15

Multiple Choice

Which of the following describes the relationship between changes in market interest rates and the market value of bonds?

• A)When interest rates increase, bond prices increase.
• B)When interest rates decrease, bond prices decrease.
• C)When interest rates increase, bond prices decrease.
• D)When interest rates decrease, bond prices increase.
• E)Both c. and d. are correct.

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Definitions:

Crises

Severe situations that disrupt the normal functioning of individuals, organizations, or societies, requiring urgent and effective responses.

Unfreezing

A term used in change management that refers to the process of making individuals or organizations ready for change by overcoming inertia and dismantling existing mindsets.

Motivation To Change

The drive or willingness of individuals or groups to alter their behavior, attitudes, or beliefs in response to external or internal pressures.

Opportunity To Change

The possibility or potential for modification, transformation or transitioning from one state or condition to another.