Q767
If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually
A.
increase in value
B.
remain unchanged
C.
decrease in value.
AnswerD.
be returned to corporation.
Answer: Option C
Solution
Answer: Option C
Solution:
If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually decrease in value. A fixed-rate bond is a bond that pays the same amount of interest for its entire term.