Which of the following will increase if the coupon rate increases?
I.face value
II.market value
III.yield-to-maturity
IV.current yield

Question

Quizplus · Accepted Answer

Increasing the coupon rate generally makes a bond more attractive, thus increasing its market value. It also increases the current yield and yield-to-maturity, as both are calculated based on the coupon payments. The face value remains unchanged.

Which of the Following Will Increase If the Coupon Rate