The market value of a bond is __________ related to the rate of interest.
a. directly
b. inversely
c. exactly
d. sometimes
e. never
Question 2
The supply of foreign exchange to the United States is generated by the desire for foreigners to acquire dollars for all except one of the following reasons. Which is the exception?
a. The United States is considered a safe haven in times of political unrest.
b. The dollar has long been accepted as an international medium of exchange.
c. Foreigners want to buy U.S. assets.
d. U.S. goods have become less attractive to foreigners.
e. Foreigners wish to make cash gifts to family in the United States.
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Which of the 3 structures shown below has the shortest bond length? Justify your answer.