When the coupon rate on newly issued bonds ________ relative to ...

[nevelica]

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

[nicoleclaire22]

Answer to Question 1

B

Answer to Question 2

A

[nevelica]

TYSM

[ryansturges]

Excellent