7 . Suppose there is a decrease in the price at which a bondholder sells her bond....
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Question:
7 . Suppose there is a decrease in the price at which a bondholder sells her bond. In this case, the holding period return will:
Multiple Choice
- increase, since yields and prices are inversely related.
- decrease, since this lowers the capital gain.
- be negative.
- equal the coupon rate.
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