Author Question: If you hold a bond at a time when market interest rates are increasing, you will find that the ... (Read 42 times)

tatyanajohnson · **on:** Jun 30, 2018

If you hold a bond at a time when market interest rates are increasing, you will find that the bond's value has
a. remained the same since the interest payment remains constant
b. increased
c. increased only if the market interest rate exceeds the interest rate payable on the bond
d. declined because you will receive a lower price when you sell the bond
e. increased only if the interest payable on the bond exceeds the market interest rate

Question 2

International reserves are
a. foreign exchange held by governments only
b. foreign exchange held by central banks only
c. foreign exchange held by governments or central banks
d. gold only
e. various internationally acceptable assets