Bonds

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A bond's face (par) value is:

A.The price paid in the market

B.The amount repaid to the holder at maturity

C.The annual coupon

D.The interest rate

A bond is best described as what?

A.A machine part

B.A type of tax form

C.A debt security

D.An ownership share only

When market interest rates rise, the prices of existing fixed-rate bonds generally:

A.Rise

B.Fall

C.Stay the same

D.Become zero

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