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The Following Information Pertains to Bonds: Further Following Information

Question 10

Multiple Choice

The following information pertains to bonds: The following information pertains to bonds:   Further following information is available about a particular bond 'Bond F' There is a 10.25% risky bond with a maturity of 2.25% year(s)  its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.   Assuming the G-Sec has not changed from the time January 2013 to April 2013, what can you predict about the changes bond price and change in issues borrowing rates: A)  Decrease and Increase B)  Increase and Increase C)  Decrease and Decrease D)  Increase and Decrease Further following information is available about a particular bond 'Bond F' There is a 10.25% risky bond with a maturity of 2.25% year(s) its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs. The following information pertains to bonds:   Further following information is available about a particular bond 'Bond F' There is a 10.25% risky bond with a maturity of 2.25% year(s)  its current price is INR105.31, which corresponds to YTM of 9.22%. The following are the benchmark YTMs.   Assuming the G-Sec has not changed from the time January 2013 to April 2013, what can you predict about the changes bond price and change in issues borrowing rates: A)  Decrease and Increase B)  Increase and Increase C)  Decrease and Decrease D)  Increase and Decrease Assuming the G-Sec has not changed from the time January 2013 to April 2013, what can you predict about the changes bond price and change in issues borrowing rates:


A) Decrease and Increase
B) Increase and Increase
C) Decrease and Decrease
D) Increase and Decrease

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