Question
If you own corporate bonds, you will be concerned about interest rate risk as it affects Blank______.
Multiple choice question.
the par value of the bonds
the market price of the bonds
coupon rates
the time to maturity
Multiple choice question.
the par value of the bonds
the market price of the bonds
coupon rates
the time to maturity
Answers
GPT-4o mini
If you own corporate bonds, you will be concerned about interest rate risk as it affects **the market price of the bonds**.
When interest rates rise, the market prices of existing bonds typically fall, and conversely, when interest rates fall, the market prices of existing bonds usually rise.
When interest rates rise, the market prices of existing bonds typically fall, and conversely, when interest rates fall, the market prices of existing bonds usually rise.