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TCO 4) What will happen to the market value of a bond if interest rates increase? (Points : 3) The market value will decrease. The

TCO 4) What will happen to the market value of a bond if interest rates increase? (Points : 3)

The market value will decrease. The market value will increase. The market value will increase or decrease, depending on the general economic climate. The market value should remain level.

(TCO 4) The upward slope of the yield curve is caused by investors' recognition of the relative difficulty of converting long-term securities to cash. This is the _____. (Points : 3)

expectations hypothesis liquidity preference theory market segmentation theory More than one of the above

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