If interest rates in the overall economy decrease to 6 percent, which one of the following is most likely to be the market value of a $1,000 corporate bond with a fixed interest rate of 7 percent?
A) $400
B) $1,100
C) $900
D) $1,000
E) $700
Since the market rate is less than the coupon rate, the market price should exceed $1,000.
Correct Answer:
Verified
Q29: Alice Cooper contributes ten percent of her
Q44: After the death of her husband,Gina Baker,35,received
Q45: Which one of the following individuals should
Q46: A $1,000 corporate bond pays 6.5 percent
Q49: Gina Davidson has received $50,000 in a
Q55: After Christmas is over,Ted Riley works hard
Q55: Which one of the following is a
Q58: Bad products or poor corporate management may
Q59: Brenda Lee has received a $10,000 gift
Q60: Twenty years ago,you began investing $250 a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents