Question
A bond sold five weeks ago for $1,100. The bond is worth $1,050 in today's market. Assuming no changes in risk, which of the following
A bond sold five weeks ago for $1,100. The bond is worth $1,050 in today's market. Assuming no changes in risk, which of the following is true?
a) Interest rates must be lower now than they were five weeks ago
b) The bond must be within one year of maturity
c) The face value of the bond must be $1100
d) The bond's current yield has increased from five weeks ago
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The Oxford Handbook Of Entrepreneurial Finance
Authors: Douglas Cumming
1st Edition
0195391241, 978-0195391244
