Multiple Choice
If the required return on a bond does not change from one year to the next, then ____________ over the same period (Ignore changes in default risk) .
A) The price of a perpetual bond will rise.
B) The price of a premium bond will rise.
C) The price of a discount bond will fall.
D) The price of a bond selling at par will remain unchanged.
E) The price of a convertible bond will rise.
Correct Answer:
Verified
Correct Answer:
Verified
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