Question 1
As interest rates go up, bond prices
◦ also go up.
◦ go down.
◦ remain the same.
◦ may go up or down.
Question 2
Bonds with a ________ degree of default risk are most susceptible to default when economic conditions are ________.
◦ low; strong
◦ high; weak
◦ high; strong
◦ low; weak