As a bond's yield increases, its price ________. As a bond's yield decreases, its price ________.
A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
E) Insufficient information.
Correct Answer:
Verified
Q43: When a callable bond is selling at
Q44: A discount bond
A) Has a coupon rate
Q45: Which of the following is commonly a
Q46: Your company will owe a single payment
Q47: Reinvestment risk occurs when interest rates:
A) increase.
B)
Q49: All else the same, a bond's interest
Q50: A bond has a yield-to-maturity that is
Q51: All else the same, as a premium
Q52: For a premium bond, the
A) Current yield
Q53: For an absolute change in interest rates,
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