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If You Hold a Bond at a Time When the Market

Question 145

Multiple Choice

If you hold a bond at a time when the market interest rate is decreasing,you will find that the bond's value will _____


A) remain the same.
B) increase.
C) decrease.
D) increase, but the annual interest payment from the bond will decrease.
E) decrease, but the annual interest payment from the bond will increase.

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