Asked by Carson Morris on May 05, 2024
Verified
As market interest rates rise,bond prices rises.
Market Interest Rates
The prevailing rates at which borrowers and lenders interact in the open market, influencing the cost of loans and the yield on savings.
Bond Prices
represent the market value of bonds, which fluctuates based on interest rates, market conditions, and the credit quality of the issuer.
- Comprehend the categorization and hazard tiers associated with different bonds and securities.
Verified Answer
AB
Alisha BogleMay 09, 2024
Final Answer :
False
Explanation :
When market interest rates rise, bond prices fall because the fixed interest payments of existing bonds become less attractive compared to new bonds issued at the higher rates.
Learning Objectives
- Comprehend the categorization and hazard tiers associated with different bonds and securities.