If you expect interest rates to go up, you should buy a long-term bond now.
Since bonds competing in the market are at fixed interest rates, you are better advised to lock in your money later when rates are higher.
Correct Answer:
Verified
Q21: The payment of a call premium may
Q33: Refunding a bond occurs when the company
Q35: As interest rates decline, bond refunding should
Q38: During economic upswings, spreads between bonds of
Q38: The weighted average cost of capital is
Q39: The value of bonds will move in
Q40: If you expect interest rates to go
Q41: The difference between the initial bond price
Q43: The primary advantage of investing in floating
Q44: The lessee is the one making the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents