Question
Which of the following is TRUE of a bond's market value? POSSIBLE ANSWERS: -The market value does not change over the life of the loan.
Which of the following is TRUE of a bond's market value?
POSSIBLE ANSWERS:
-The market value does not change over the life of the loan.
-The market value will change when the prevailing interest rate changes.
-If prevailing interest rates rise, so does the market value of that bond.
-If prevailing interest rates drop, so does the market value of that bond.
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Financial Markets And Institutions
Authors: Stanley Eakins Frederic Mishkin
9th Global Edition
1292215003, 978-1292215006
