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which of the following is correct? All else equal, the market value of a bond decreases when the market interest rate decreases. B A bond
which of the following is correct?
All else equal, the market value of a bond decreases when the market interest rate decreases. B A bond will be worth less than its par value if its coupon rate is less than the market rate. (c) Any regular coupon bond of any maturity will sell for its face value if the coupon rate is less than the market rate of interest. All else equal, the market value of a corporate bond is always inversely related to its coupon rate. An increase in the market value of the common stock will increase the market-to-book ratio. B The market-to-book ratio is of most interest to the creditors of a firm. A decrease in the price of the stock on the stock exchange will increase the market-to-book ratio. D The market-to-book ratio provides the selling price of a firm's inventory. Which one of the following statements is correct, all else constant? A The present value of a sum increases as the interest rate increases. B. The present value of a sum increases as the period of time decreases. The future value of a sum is not affected by the interest rate. D The future value of a sum increases as the period of time decreases Step by Step Solution
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