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Which of the following statement is TRUE? Question 1 7 options: One can best describe the term structure of interest rates as the relationship between
Which of the following statement is TRUE?
Question options:
One can best describe the term structure of interest rates as the relationship between spot interest rates and bond prices.
An year bond is issued with a face value of $ paying interest of $ a year. If interest rates increase shortly after the bond is issued, the coupon rate falls.
An year bond is issued with a face value of $ paying interest of $ a year. If interest rates decreases shortly after the bond is issued, the price falls.
The type of bonds where the identities of bond owners are recorded and the coupon interest payments are sent automatically are called registered bonds.
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