Multiple Choice
Answer the question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent.If the price of this bond increases to $1,250, the interest rate will
A) fall to 9 percent.
B) fall to 8 percent.
C) rise to 11 percent.
D) rise to 12 percent.Accessibility: Keyboard Navigation
Correct Answer:
Verified
Correct Answer:
Verified
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