The return on bonds currently held will be more favorable if interest rates ________ over the period you hold the bonds.

Name: The return on bonds currently held will be more favorable if interest rates ________ over the period you hold the bonds.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

When interest rates decrease, the value of existing bonds with higher interest rates increases, making the return on these bonds more favorable compared to newly issued bonds with lower rates.

The Return on Bonds Currently Held Will Be More Favorable