-Refer to Table 12.1. Between year 1 and year 2, the interest rate on the bond
A) did not change.
B) decreased by 1 percentage point.
C) increased by 1 percentage point.
D) decreased by 10 percentage points.
E) increased by 10 percentage points.

Question

-Refer to Table 12.1. Between year 1 and year 2, the interest rate on the bond
A) did not change. 
B) decreased by 1 percentage point. 
C) increased by 1 percentage point. 
D) decreased by 10 percentage points. 
E) increased by 10 percentage points.

Quizplus · Accepted Answer

The interest rate on the bond increased by 1 percentage point between year 1 and year 2, as indicated by a rise in the interest rate from one year to the next.