Question
What happens to the annual price of a four-year, P1,000 bond with an 8% annual coupon when interest rates change from 8% to 6%? Group
What happens to the annual price of a four-year, P1,000 bond with an 8% annual coupon when interest rates change from 8% to 6%?
Group of answer choices
A price decrease of P57.09.
A price increase of P69.30.
A price increase of P57.07.
No change in price.
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Intermediate Accounting Volume 2
Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo
2nd Edition
1618533134, 9781618533357
