Market interest rates have been rising, which means that the price of bonds traded in the secondary market has:

Market interest rates have been rising, which means that the price of bonds traded in the secondary market has:


A) decreased.

B) increased.

C) not changed because only new bond prices are impacted by changes in interest rates not the price of bonds already trading in the secondary market.

D) not changed because bond prices are not affected by interest rates.



Answer: A) decreased.


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