Question: 1. (TCO 4) What effect, if any, will a decrease in interest rates have on bond values? (Points : 4) Bond values will increase. Bond

1. (TCO 4) What effect, if any, will a decrease in interest rates have on bond values? (Points : 4) Bond values will increase. Bond values will decrease. Bond values may increase or decrease, depending on the maturity, quality, and coupon rate. None of the above 2. (TCO 4) Duration is influenced by everything except (Points : 4) maturity. market rate of interest. coupon rate on the bond. the issuer of the bond

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