The current yield goes up as the price of a bond falls.
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A bonds with a 5% coupon as has a yield to maturity of 5%.
A. 对
B. 错
When the real interest rate is low, there are greater incentives to borrow and fewer incentives to lend.
A. 对
B. 错
An increase in the federal government budget deficit will raise the interest rate on bonds.
A. 对
B. 错
A movement along the demand (or supply) curve occurs when the quantity demanded (or supplied) changes at each given price (or interest rate) of the bond in response to a change in some other factor besides the bond's price or interest rate.
A. 对
B. 错