If the market interest rate falls,_____.
A) the value of a previously issued bond falls
B) the value of a previously issued bond increases
C) the market price for bonds decreases
D) the demand for bonds increases

Question

Quizplus · Accepted Answer

When market interest rates fall, the value of previously issued bonds with higher interest rates becomes more attractive, leading to an increase in their value.

If the Market Interest Rate Falls,_____