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A ten-year annuity pays $100 each year. The market discounts it at a yield of 5%. Which of the following changes will cause its present
- A ten-year annuity pays $100 each year. The market discounts it at a yield of 5%. Which of the following changes will cause its present value to increase? Choose two.
- An increase in its maturity to eleven years.
- An increase in yield to 6%.
- An increase in cash flow to $110.
- What is meant, in a fixed income context, by a bad day?
- a day when interest rates went up
- a day when bond prices rose
- a day when bond prices fell
- a day when banks are closed and, therefore, proceeds or interest/coupon payments cannot be received
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