Question
Which of the following statements about bond prices is correct? If the market interest rate for the bond (YTM) increases, the bond price will increase
Which of the following statements about bond prices is correct?
| If the market interest rate for the bond (YTM) increases, the bond price will increase | ||
| If the coupon yield (=coupon rate) is higher than the market interest rate for the bond (YTM), the price of the bond will be higher than 100% of the face value | ||
| If the coupon yield (=coupon rate) is higher than the market interest rate for the bond (YTM), the price of the bond will be lower than 100% of the face value | ||
| The price of a bond is always equal to its face value |
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Business Finance Terminology Speedy Study Guide
Authors: Speedy Publishing
1st Edition
1635011620, 978-1635011623
