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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:

The bond is risk-free

The bond is risky

The bond's rating has been improved

The bond is selling at a discount

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