If interest rates fall after a bond issue, the bond’s price will _____.  This change will be more noticeable for _________ bonds.   a. decrease ... long-term   b. increase ... short-term   c. decrease ... short-term   d. increase ... long-term

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 12CQ
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  1. If interest rates fall after a bond issue, the bond’s price will _____.  This change will be more noticeable for _________ bonds.
      a.
    decrease ... long-term
      b.
    increase ... short-term
      c.
    decrease ... short-term
      d.
    increase ... long-term
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