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Suppose an investor purchased a newty issued 5 year non-callable corporate bond, at par, 2 years ago. Since then, the interest rate in thhe market
Suppose an investor purchased a newty issued 5 year non-callable corporate bond, at par, 2 years ago. Since then, the interest rate in thhe market hae irscrensed. the investor plans on keeping the bond until maturity, if interest rate dont change again then, all else equal, this bond will: A. Currerntly sell at a rerniurm to face value. B. Have higher coupons than 2 years ago. C. Be called (repurchased) by the bond issuer D. Increase in price each year between now and maturity.
investor plans on keeping the bond until maturity, if interest rate dont change again then, all else equal, this bond will:
A. Currerntly sell at a rerniurm to face value.
B. Have higher coupons than 2 years ago.
C. Be called (repurchased) by the bond issuer
D. Increase in price each year between now and maturity.
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