Prevailing rates of interest and bond prices

Assignment Help Financial Management

Reference no: EM131358382

1. Holders of equity capital

A. Own the firm

B. Receive interest payments

C. Receive guaranteed income

D. Have loaned money to the firm

2. Which statement best describes the relationship between prevailing (market) rates of interest and bond prices:

A. As interest rates fall, bond prices fall

B. As interest rates rise, bond prices fall

C. As interest rates fall, bond prices remain constant

D. As interest rates rise, bond prices rise

Reference no: EM131358382

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