WILL GIVE BRAINIEST FOR CORRECT ANSWER!!!!!!!!!!!!

If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally:
A. increase in value.
B. decrease in value.
C. remain unchanged.
D. become worthless.

A fixed-rate bond is a one that returns the same amount of interest for its whole duration. An investor who needs to earn an assured interest rate for a defined time could buy a fixed-rate corporate bond, as well as a treasury bond or municipal bond.

The advantage of holding a fixed-rate bond is that investors know without any doubts the amount of interest they will collect and for how long.

However, the main risk of having fixed-rate bonds is interest rate risk. If that bond interest rate rises, the investor’s existing bonds become less valuable.

WILL GIVE BRAINIEST FOR CORRECT ANSWER!!!!!!!!!!!! If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally: A. increase in value. B. decrease in value. C. remain unchanged. D. become worthless.

Respuesta :

Otras preguntas

WILL GIVE BRAINIEST FOR CORRECT ANSWER!!!!!!!!!!!!

If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally:
A. increase in value.
B. decrease in value.
C. remain unchanged.
D. become worthless.