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If Interest Rates Consistently Decline Over a Specific Period, the Market

Question 35

Multiple Choice

If interest rates consistently decline over a specific period, the market price of a bond you own would likely ____ over this period. (Assume no major change in the bond's default risk.)


A) consistently increase
B) consistently decrease
C) remain unchanged
D) change in a direction that cannot be determined with the above information

Correct Answer:

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