What happens to outstanding fixed-income securities when market interest rates drop?
A) Short-term fixed-income securities are affected most.
B) Prices increase.
C) Yields increase.
D) Coupon rates increase.
Answer: B) Prices increase.
Investments Chapter | Multiple Choice | Questions and Answers | Test Bank
A) Short-term fixed-income securities are affected most.
B) Prices increase.
C) Yields increase.
D) Coupon rates increase.
Answer: B) Prices increase.