December 2014

1:

Consider the tollowing two statements:

Statement I :  Bond value would decline when the market rate of interest rises. Statement II : There is a positive relationship between the value of a bond and the interest rate. Select the correct code:
A.

Statement I and Statement II both are correct.

B.

Statement I is correct, but Statement II is incorrect.

C.

Statement II is correct, but Statement I is incorrect.

D.

Statement I and Statement II both are incorrect.

 

Answer : B

Explanation :

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Option: A

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