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Which of the following best describes the relationship between secondary market bond prices and market rates? If the market rates increase, secondary market bond prices
Which of the following best describes the relationship between secondary market bond prices and market rates?
If the market rates increase, secondary market bond prices will decrease. | ||
There is no pattern to the relationship between secondary market bond prices and market rates. | ||
If the market rates increase, secondary market bond prices will increase until the coupon rate and market rate are the same and then decrease afterward. | ||
If the market rates increase, secondary market bond prices also increase. |
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