Question
Consider a 7-year semi-annual bond with an annual coupon rate of 9% and a bond equivalent yield (BEY) of 12%. If interest rates remain constant,
Consider a 7-year semi-annual bond with an annual coupon rate of 9% and a bond equivalent yield (BEY) of 12%. If interest rates remain constant, one year from now the bonds price will be __________.
None of the above.
It depends if it is a semi-annual or an annual bond.
Higher.
The same.
Lower.
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
