If the Level of Interest Rates Increases,then the Current Value

question 146

Multiple Choice

If the level of interest rates increases,then the current value and price of a bond paying a fixed interest payment will

• A)remain unchanged since its underlying value,the interest payment is fixed.
• B)fall since new bonds offer higher rates.
• C)rise since new bonds offer higher rates.
• D)first rise then fall as bond investors calculate the effects of the change in rates.

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Taxes paid by employers based on employee wages/salaries to fund unemployment compensation to workers who have lost their jobs.

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Health care insurance for which premiums may be paid through a deduction from an employee’s paycheck.

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Taxes levied on income by individual states, varying widely in rate and structure from state to state.

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A government program that provides financial assistance to people with insufficient or no income, especially the elderly, disabled, and families with dependent children.