Examveda
Examveda

An increasing in interest rate leads to decline in value of

A. junk bonds

B. outstanding bonds

C. standing bonds

D. premium bonds

Answer: Option B

Solution(By Examveda Team)

An increasing in interest rate leads to decline in value of outstanding bonds. Outstanding Bonds means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of Maximum Special Taxes.

This Question Belongs to Commerce >> Financial Management

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