AFP Certified Treasury Professional CTP Question # 421 Topic 19 Discussion

AFP Certified Treasury Professional CTP Question # 421 Topic 19 Discussion

CTP Exam Topic 19 Question 421 Discussion:
Question #: 421
Topic #: 19

The U.S. Treasury unexpectedly announces a plan to issue $100 billion of U.S. Treasury bills. Which of the following would MOST LIKELY affect U.S. short-term bond prices and interest rates (all other factors stay constant)?


A.

Interest rates increase and bond prices decrease


B.

Interest rates decrease and bond prices increase


C.

Interest rates increase and bond prices increase


D.

Interest rates decrease and bond prices decrease


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