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Which one of the following statements concerning bond yields or bond prices is TRUE? Select one: a. A credit rating upgrade is likely to lead
Which one of the following statements concerning bond yields or bond prices is TRUE? Select one: a. A credit rating upgrade is likely to lead to a fall in the price of the upgraded bond. b. A 10-year Treasury bond issued with a face value of $1000 and a coupon of $40 will rise in price if the next day a new 10 -year Treasury bond with an identical face value is sold with a coupon of $30. c. The bond yield is likely to decrease if the expected rate of inflation rises. d. A bond with 5 years to maturity will tend to fluctuate more in price than a bond with 10 years to maturity as bond yields fluctuate, other things being equal. Which one of the following statements concerning bond yields or bond prices is TRUE? Select one: a. A credit rating upgrade is likely to lead to a fall in the price of the upgraded bond. b. A 10-year Treasury bond issued with a face value of $1000 and a coupon of $40 will rise in price if the next day a new 10 -year Treasury bond with an identical face value is sold with a coupon of $30. c. The bond yield is likely to decrease if the expected rate of inflation rises. d. A bond with 5 years to maturity will tend to fluctuate more in price than a bond with 10 years to maturity as bond yields fluctuate, other things being equal
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