Question
A fixed coupon bond currently has a price of $1,100 and a yield of 6%.All else being equal, you know if the same bond had
A fixed coupon bond currently has a price of $1,100 and a yield of 6%.All else being equal, you know if the same bond had a yield of 8%, its price would be $900.The coupon rate of the bond ________________.
Must be between 6% and 8%
No enough information to say
Must be 7%
Must be less than 6%
Must be greater than 8%
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Get StartedRecommended Textbook for
Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
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