Which of the following is not true if interest rates rise? _______
A. Existing bonds may be called back.
B. Prices of existing bonds fall.
C. The yield to maturity rises more than the current yield.
D. The market price of a zero coupon bond falls.
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If interest rates in general rise,________
A. the prices of existing bonds rise
B. the prices of existing bonds fall
C. the prices of matured bonds rise
D. the prices of matured bonds fall
Bonds never sell for a premium over their principal value. ()
Since bonds pay a fixed amount of interest, their prices do not fluctuate. ()
One difference between stocks and bonds is that one issuer may issue different types of bonds, but only one type of common stock. ()