Multiple Choice
Suppose that one year ago you purchased a $100 bond with an interest payment of $5 per year and,at the time,the interest rate was 5 percent.One year later the interest rate has increased to 6.5 percent,and you still hold the bond.If you were to sell your bond now,the price that you could sell it for would be
A) higher than it was when you bought it.
B) lower than it was when you bought it.
C) the same as it was when you bought it, that is, $100.
D) More information is necessary to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
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