Question

Arthur invests $228 in a savings
account.
Over time, this amount increases
in the ratio 2 : 7
How much is now in his account
and what is the increase?​

Answer 1

Step-by-step explanation:

When interest rates rise, the market value of bonds falls. If you have a bond with a coupon of 3% and the cash rate increases from 3% to 4%, for example, the coupon rate on the bond will now seem less attractive to investors so they'll be willing to pay less for it.