Quiz 12: Investing in Stocks and Bonds
Bond Prices Are Impacted by Both the Direction and Magnitude
Bond prices are impacted by both the direction and magnitude of interest rate changes.
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The higher the tax bracket you are in,the more attractive the purchase of municipal bonds becomes.
A bond with a yield to maturity that equaled or exceeded an investor's desired rate of return is considered an attractive investment.
There is an inverse relationship between the bond prices and market interest rates.
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