When the Interest Rate Rises, Bond Values

question 162

Multiple Choice

When the interest rate rises, bond values

• A) rise.
• B) fall.
• C) are unchanged because the interest rate paid on a bond is fixed.
• D) will either increase or decrease depending on the type of bond.

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Definitions:

Food Chains

A hierarchy of organisms each dependent on the next as a source of food, illustrating the flow of energy and nutrients.

Chlorophyll

A pigment found in plants and algae that's critical for photosynthesis, allowing them to absorb light energy.

Green

A color associated with wavelengths of light perceived by the human eye, commonly associated with nature, growth, and renewal.

CAM Plants

Crassulacean Acid Metabolism plants that fix carbon dioxide at night to reduce water loss during photosynthesis, common in arid conditions.