Question
Q. A bond matures in 10 years and has a coupon rate of 6 percent. If the market rate of interest increases, then the: -A-
Q. A bond matures in 10 years and has a coupon rate of 6 percent. If the market rate of interest increases, then the:
-A- Current yield will decrease
-B- Market price of the bond will decrease
-C- Coupon rate will also increase
-D- Yield to maturity will be less than the coupon rate
-E- Coupon payment will increase
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
