Examveda
Examveda

Prices of bonds will be decreased if an interest rates

A. rises

B. declines

C. equals

D. none of above

Answer: Option A

Solution(By Examveda Team)

Prices of bonds will be decreased if an interest rates rises. An existing bond's price or present value moves in the opposite direction of the change in market interest rates: Bond prices will go up when interest rates go down, and Bond prices will go down when interest rates go up.

This Question Belongs to Commerce >> Financial Management

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