If a bond's value rises above its face value during its life,interest rates have

Question

Quizplus · Accepted Answer

When a bond's value rises above its face value, it means that demand for the bond has gone up, and investors are willing to pay more for the bond than what it was originally sold for. This increase in demand is usually because interest rates have decreased, causing existing bonds with higher interest rates to become more valuable and sought after. Therefore, Option B is the correct choice.

If a Bond's Value Rises Above Its Face Value During