Multiple Choice
Suppose a perpetuity bond with a face value of $1,000 has a 10% coupon rate. If market interest rates fall to 8%, the price of the bond
A) falls to $750.
B) stays at $1,000.
C) rises to $1,080.
D) rises to $1,250.
Correct Answer:
Verified
Correct Answer:
Verified
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