If generally interest rates in nation increase a corporate bond with...

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If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually

A. increase in value

B. remain unchanged

C. decrease in value.

D. be returned to corporation.

Answer: Option C

Solution (By Examveda Team)

If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually decrease in value. A fixed-rate bond is a bond that pays the same amount of interest for its entire term.

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