Question

A rise in the market interest rate will cause the market value of a financial instrument such as a bond to rise. Select one: True False

Answer 1

False

Step-by-step explanation:

As we know that there is an opposite relationship between the price of the bond and the market interest rate. That means if there is a rise in the market interest rate so the price of the bond decreased

And, on the other hand if there is a decrease in the market interest rate so the price of the bond is increased

hence, the given statement is false