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A customer buys a Brokered CD for $100,000. Upon receipt of his next account statement, the customer sees that the market value of the CD is shown as $99,800. This would occur because: A interest rates have risen B interest rates have fallen C the broker's commission for selling the CD has been subtracted out D the bank that issued the CD has charged an up-front handling fee

Respuesta :

Answer: A. interest rates have risen

Explanation:

Since the customer buys a Brokered CD for $100,000 and upon eceipt of his next account statement, he sees that there has been a reduction in the market value of the CD to $99,800.

This would occur because there has been an increase in the interest rates. On the other hand, assuming there was a reduction in the interest rate, this will lead to an increase in the market value.

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