Use the figure below to answer the following questions.
Figure 8.5.2
-Refer to Figure 8.5.2.Which one of the following best shows the effect of a decrease in the market price of bonds?
A)A movement from A to B
B)A movement from A to C
C)A movement from A to F
D)A movement from E to A
E)A movement from A to E

Question

Use the figure below to answer the following questions.
  Figure 8.5.2
-Refer to Figure 8.5.2.Which one of the following best shows the effect of a decrease in the market price of bonds?
A)A movement from A to B 
B)A movement from A to C 
C)A movement from A to F 
D)A movement from E to A 
E)A movement from A to E

Quizplus · Accepted Answer

A decrease in the market price of bonds will cause the yield to increase. This is shown by a movement from A to B on the graph.

Use the Figure Below to Answer the Following Questions