Exhibit 15-7
-Referring to Exhibit 15-7,a decrease in the interest rate will cause a move from
A)A to B
B)A to F
C)A to G
D)A to C
E)A to I

Name: Exhibit 15-7 -Referring to Exhibit 15-7,a decrease in the interest rate will cause a move from A)A to B B)A to F C)A to G D)A to C E)A to I
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Question

Exhibit 15-7 
-Referring to Exhibit 15-7,a decrease in the interest rate will cause a move from
A)A to B 
B)A to F 
C)A to G 
D)A to C 
E)A to I

Quizplus · Accepted Answer

A decrease in the interest rate will cause an increase in the present value of bond payments, making the bond more valuable. This will result in a move along the yield curve from point A to point B.

Exhibit 15-7 -Referring to Exhibit 15-7,a Decrease in the Interest Rate Will