n NISM Certifications
XVII NISM Series XVII
Medium

If RBI raises interest rates on bonds similar to Mr. Shah's bond paying 7%, what will happen to the bond’s market value?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The interest rate of his bond will rise

  2. B

    The bond’s market value will rise

  3. The bond’s market value will fall

    Correct answer

  4. D

    No impact

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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