which of the following would you expect to happen in US treasury if rating agencies downgraded US government debt due to covid 19? 1. US treasury yields would go down 2. US treasury yields would go up 3. Face-values oof US treasuries would go down 4. Face-values of US treasury would go up a. 1 only b. 2 and 4 only c. 2 only d. 1 and 4 only e, 1 and 3
which of the following would you expect to happen in US treasury if rating agencies downgraded US government debt due to covid 19?
1. US treasury yields would go down
2. US treasury yields would go up
3. Face-values oof US treasuries would go down
4. Face-values of US treasury would go up
a. 1 only
b. 2 and 4 only
c. 2 only
d. 1 and 4 only
e, 1 and 3
Face value of a bond , also called par value, such as US treasury and Municipal bonds is the price at which it is initially offered to the public. It remains fixed throughout as it is independent of the fluctuations in the present market situations. Whereas the price of bond is the rate at which it is currently offered to the public. It varies with the changes in market conditions and determined by the demand and supply of bonds. For example, a favorable change in current market conditions will push up the price of bond above the face value.
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