Question
What happens when the market interest rates increase? The present value of cash flows increases in value. The bond will gain value. The present value
What happens when the market interest rates increase?
The present value of cash flows increases in value.
The bond will gain value.
The present value of cash flows will become equal to the market interest rates.
The bond value will decrease.
The present value of cash flows decreases in value.
There is no direct relationship between market interest rates and the present value of cash flows.
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
