Question: 96. If the market rate of interest for this type of bond increases to 9%, which of the following is true? a. The market value

96. If the market rate of interest for this type of bond increases to 9%, which of the following is true?

a. The market value of Watco’s bond will increase.

b. The market value of Watco’s bond will decrease.

c. The effect will depend on the change in the LIBOR rate.

d. The effect cannot be predicted.

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