In the secondary market,when the market rate of interest on bonds increases:
A)bond prices decline
B)bond prices increase
C)both b and d are correct
D)the carrying value of the bonds increases

Question

Quizplus · Accepted Answer

When the market rate of interest increases, the present value of future cash flows from bonds decreases, causing the bond prices to decline in the secondary market.

In the Secondary Market,when the Market Rate of Interest on Bonds