Question
How an increase in interest rate affects bond prices? Question 6 options: It decreases the price of both premium and discounted bonds It increases the
How an increase in interest rate affects bond prices?
Question 6 options:
| It decreases the price of both premium and discounted bonds | ||||||||
| It increases the price of both premium and discounted bonds | ||||||||
| It increases the price of premium bonds and decrease the price of discounted bonds | ||||||||
| It decreases the price of premium bonds and increase the price of discounted bonds
What can you say about a bond if its price has increased since last year while its YTM remained the same? Question 8 options:
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