If a bond has a fixed coupon interest rate,the only way for the bond to increase its return to investors is to

Name: If a bond has a fixed coupon interest rate,the only way for the bond to increase its return to investors is to
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Quizplus · Accepted Answer

Since the coupon interest rate is fixed, the only way for the bond to increase its return (yield) to investors is if it drops in value and sells for less, because the fixed coupon payments will represent a higher percentage return relative to the lower purchase price.

If a Bond Has a Fixed Coupon Interest Rate,the Only