A recent purchaser of a bond that agrees to pay an annual nominal amount would hope that interest rates do not rise.

Name: A recent purchaser of a bond that agrees to pay an annual nominal amount would hope that interest rates do not rise.
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Question

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for two reasons.First,the person is locked into a lower interest rate.Second,if the person needs to sell the bond,he will incur a loss since at higher interest rates,bond prices fall.

A Recent Purchaser of a Bond That Agrees to Pay