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Consider the bonds shown below: Bond Issuer Par Value Coupon Rate Yield to Maturity Time to Maturity Bond Rating Shelby Specialty Pets $1,000 4.5% 4.75%

Consider the bonds shown below:

Bond Issuer Par Value Coupon Rate Yield to Maturity Time to Maturity Bond Rating
Shelby Specialty Pets $1,000 4.5% 4.75% 10 years BBB
Tony's Plant-Based Meat $1,000 5.2% 5.10% 3 years B
Kelly Cosmetics $1,000 3.6% 3.95% 15 years AA

If interest rates in the economy fall by 75 basis points (0.75%), which of the following statements is CORRECT? Select all that apply.

a)

The prices of Shelby's Specialty Pets and Kelly Cosmetics fall but the price of Tony's Meat rises.

b)

All bond prices fall.

c)

All bond prices rise.

d)

The prices of Shelby's Specialty Pets and Kelly Cosmetics rise but the price of Tony's Meat falls.

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