Asked by Madilyn McPherson on Apr 26, 2024
Verified
The market interest rate does not have any effect on bond prices.
Market Interest Rate
The prevailing rate of interest available in the marketplace on investments, savings, or loans.
Bond Prices
Bond prices refer to the market value of a bond, which can fluctuate based on interest rates, the creditworthiness of the issuer, and other market factors.
- Acquire knowledge on the taxonomy and danger levels pertinent to various bonds and securities.
Verified Answer
BD
Bradley DeVeauxApr 30, 2024
Final Answer :
False
Explanation :
The market interest rate and bond prices have an inverse relationship; when market interest rates rise, bond prices typically fall, and when market interest rates fall, bond prices typically rise.
Learning Objectives
- Acquire knowledge on the taxonomy and danger levels pertinent to various bonds and securities.