Question
Viktor Hovland just purchased a bond that has a price of $985. The bond has 20 years to maturity and has a coupon rate of
Viktor Hovland just purchased a bond that has a price of $985. The bond has 20 years to maturity and has a coupon rate of 6%. Which of the following is true?
A. If the YTM of the bond stays constant, the price of the bond will go up over time.
B. If the YTM of the bond stays constant, the price of the bond will decline over time.
C. This bond is a premium bond.
D. This bond is a par bond.
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The Complete Personal Finance Handbook
Authors: Teri B Clark
1st Edition
160138047X, 978-1601380470
