Question
When interest rates decrease, what happens to the bond prices of seasoned issues (reminder: the coupon rate is fixed at issue)? a. the bond prices
When interest rates decrease, what happens to the bond prices of seasoned issues (reminder: the coupon rate is fixed at issue)?
a.
the bond prices decrease
b.
the bond prices increase
c.
the bond prices are unaffected
d.
the bonds will be retired and re-issued at higher coupon rates
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The Concepts And Practice Of Mathematical Finance
Authors: Mark S. Joshi
1st Edition
0521823552, 9780521823555
