Question
please answer the questions a. Bond price is inversely related to the market discount rate. When the market discount rate increases, the bond price decreases:
a. Bond price is inversely related to the market discount rate. When the market discount rate increases, the bond price decreases:
True [ ], False [ ]
b. For the same coupon rate and time-to-maturity, the percentage price change is greater (in absolute value, meaning without regard to the sign of the change) when the market discount rate goes up than when it goes down:
True [ ], False [ ]
c. For the same time-to-maturity, a lower-coupon bond has a greater percentage price change than a higher-coupon bond when their market discount rates change by the same amount:
True [ ], False [ ]
d. Generally, for the same coupon rate, a shorter-term bond has a greater percentage price change than a longer-term bond when their discount rates change by the same amount:
True [ ], False [ ]
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