Question
Consider a 10% bond with a YTM of 9%. All else equal (including the YTM remaining 9%), the mere passage of time (e.g., 6 months
Consider a 10% bond with a YTM of 9%. All else equal (including the YTM remaining 9%), the mere passage of time (e.g., 6 months later) we should expect the bond price to move:
a. Lower
b. Higher
c. Neither lower or higher (we expect the bond price will remain the same)
Why?
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
