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When interest rates go up the market price of a bond goes up

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1. Corporate management, acting as the owner's agent, makes all decisions in the owner's best interests.

2. A high inventory turnover would be more important to a dairy company than to a jewelry store.

3. A saving account at bank a pays 6 percent interest, compounded annually. Bank b savings account pays 6 percent compounded

semiannually. Bank b is paying twice as much interest.

4. All other things being equal I did have $1000 today than to receive $1000 in 1 year 1 day.

5. If the discount rates decrease, the present value of a given future amount decreases.

6. In valuing a security (such as bound or stock) , we only need to know what the future cash flows will be.

7. When interest rates go up the market price of a bond goes up.

 

 

Reference no: EM13854611

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