While bond prices fluctuate,
A)yields are constant
B)coupons are constant
C)the spread between yields is constant
D)short-term bond prices fluctuate more

Name: While bond prices fluctuate, A)yields are constant B)coupons are constant C)the spread between yields is constant D)short-term bond prices fluctuate more
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Question

Quizplus · Accepted Answer

Coupons are constant because they are determined at the issuance of the bond and do not change throughout the life of the bond, regardless of market conditions.

While Bond Prices Fluctuate