Question
The total return on a 5 year bond with $10,000 par value and an annual coupon rate of 6 percent will be most favourable if
The total return on a 5 year bond with $10,000 par value and an annual coupon rate of 6 percent will be most favourable if interest rates
a.
increase to 7 percent.
b.
increase to 8 percent.
c.
decrease to 5 percent.
d.
decrease to 4 percent.
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Finance For Real Estate Development
Authors: Charles Long
1st Edition
0874204305, 978-0874204308
