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Bond Relationships. Select one or more of the following phrases to complete the following sentences. increase, decrease, par, discount, premium, less than, more than, greater
Bond Relationships. Select one or more of the following phrases to complete the following sentences. increase, decrease, par, discount, premium, less than, more than, greater , less a. If the current interest rate exceeds the bond's coupon rate, the bond will sell at a b. The value of a bond to increase if there is a/an _in interest rates. c. A bond's coupon rate is more than the interest rate, therefore the bond is selling at a d. As interest rate increases the value of a bond will e. If the bondholder's required rate of return equals the coupon interest rate, the bond will sell at f. A premium bond sells for as maturity approaches. 3. The discount bond sells for -as maturity approaches. h. A bondholder with a short-term bond is exposed to interest rate risk than when owing a long-term bond
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