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Interest rate and bond prices

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As interest rates increase, bond prices generally:
a. increase
b. do not change, because they are fixed by contract
c. do not change, because the prices are offsetting the rate increases
d. decrease.

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Solution Summary

Response explains the relationship between Interest rate and bond prices.

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As per mysmp, "When interest rates move higher, the bond yield that a pre-existing bond has becomes less ...

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