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When overall interest rates rise (to 10%), the bond you already own (with 5% coupon rate) becomes _______ valuable to potential buyers, so its price will _________.

When overall interest rates rise (to 10%), the bond you already own (with 5% coupon rate) becomes _______ valuable to potential buyers, so its price will _________.
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When overall interest rates rise (to 10%), the bond you already own (with 5% coupon rate) becomes _______ valuable to potential buyers, so its price will _________.

asked
User Tanktalus
by
8.0k points

1 Answer

4 votes

Answer: Not valuable, decrease

Explanation:

This would make sense, but its indubitable.

answered
User Aaron Mazie
by
8.1k points
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