Assume that you purchased a $1,000 perpetual bond and the interest rat

Assume that you purchased a $1,000 perpetual bond and the interest rate on that bond declined from 5 percent to 2 percent. Thus,

a. the bond price increased by $1,500.
b. you could sell this bond at a capital gain.
c. if this was anticipated, the speculative demand for money fell.
d. All of the above
e. None of the above

ANSWER

D