FIN 351 CHAPTER 12 QUIZ 41 TO 45
41. What effect, if any, will decrease in interest rates have on bond values?
A. Bond values will increase
B. Bond values will decrease
C. Bond values may increase or decrease, depending on the maturity, quality and coupon rate
D. None of the above
42. Assuming interest rates are expected to fall, which of the following will most likely maximize price increase?
A. Commercial paper
B. U.S. Treasury bills
C
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05 Sep 2015