Ask Question
BusinessBusiness
2 February, 03:14

If overall interest rates in the economy fall, then a corporate bond with a fixed interest rate will decrease in value. true or false

+1
Answers (1)
  1. 2 February, 03:16
    0
    False

    Explanation:

    The statement is false, as a decrease in the overall interest rate increases the overall worth of a bond which pays fixed interest rate payments. The public will demand more bonds with fixed interest rate payments, and the demand for bonds with flexible interest payments will decrease likewise. This is the main reason why the face value of bonds with fixed interest rate payments is usually higher than flexible bonds because they are less risky.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If overall interest rates in the economy fall, then a corporate bond with a fixed interest rate will decrease in value. true or false ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The winter music program at Love to Learn Daycare has grown to twice its size this year, raising the program cost for the month of December to 20 percent of budget.
Answers (1)
This is the forces that combine to make the production of products and services possible. a. product factors b. factors of service c. factors of production d. service factors
Answers (1)
Of the following statements, which are true for the corporate form of organization? (You may select more than one answer.
Answers (1)
Equipment was purchased at a cost of $52,000. It had an estimated useful life of seven years and a residual value of $3,000.
Answers (1)
If a bank sells $10 million of bonds to the Fed to pay back $10 million on the loan it owes, what will be the effect on the level of checkable deposits?
Answers (1)
New Questions in Business
Masks Inc. is a cosmetics company that makes beauty products. It uses whale oil from dead whales only and does not kill whales to obtain blubber. A newspaper publishes a report stating that Masks Inc.
Answers (1)
Transfer payments are not included in gdp calculation because these are
Answers (1)
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Home » Business » If overall interest rates in the economy fall, then a corporate bond with a fixed interest rate will decrease in value. true or false
Sign Up Forgot Password?