If interest rates consistently decline over a specific period, the market price of a bond you own would likely ____ over this period. (Assume no major change in the bond's default risk.)

Question

Quizplus · Accepted Answer

When interest rates decline, the yields on bonds also decrease, making existing bonds with higher yields more attractive to investors. Therefore, the market price of a bond you own would likely increase over this period.

If Interest Rates Consistently Decline Over a Specific Period, the Market