Use the figure below to answer the following questions.

Figure 24.4.2
-Refer to Figure 24.4.2.Which one of the following best describes the response to a rise in the market price of bonds?

Question

Use the figure below to answer the following questions.
  
Figure 24.4.2
-Refer to Figure 24.4.2.Which one of the following best describes the response to a rise in the market price of bonds?

Quizplus · Accepted Answer

A rise in the market price of bonds will lead to a decrease in the yield (interest rate) on those bonds. This means investors will be willing to purchase the bonds at a higher price, resulting in an increase in the demand for bonds. This increase in demand is represented by a movement along the demand curve from point A to point C.

Use the Figure Below to Answer the Following Questions