Multiple Choice
All other things being equal, a bond's value will be below its maturity value of $1,000 if it pays interest of $100 per year and investors require a rate of return that is,:
A) less than 10%
B) exactly 10%
C) higher than 10%
D) either less than or greater than 10%
Correct Answer:
Verified
Correct Answer:
Verified
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