Question
Which statement is correct? None of these. Long-term bonds have lower reinvestment rate risk than short-term bonds. Long-term and short-term bonds are equally affected by
Which statement is correct?
None of these. | ||
Long-term bonds have lower reinvestment rate risk than short-term bonds. | ||
Long-term and short-term bonds are equally affected by a chance in interest rates. | ||
Long-term bonds have lower interest rate risk than short-term bonds. | ||
Long-term and short-term bonds from the same company have the same default risk. |
If Helga Inc. issued a bond that is currently selling for $950 has 7 years left until maturity and currently as a 9.4% yield to maturity. What must the bonds coupon price be?
None of these | ||
$42.05 | ||
$99.37 | ||
$83.93 | ||
$298.66 |
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