Author Question: When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market ... (Read 116 times)

nevelica · **on:** Jun 29, 2018

When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ________.

A) increases; rises in the secondary market B) increases; falls in the secondary market
C) decreases; falls in the primary market D) decreases; falls in the secondary market

Question 2

Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires The Paint Pros, a professional painting company, to paint her home.

A) K and G B) K and M C) J and G D) J and M