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    Money Banking
  4. Exam
    Exam 6: Bonds, Bond Prices, and the Determination of Interest Rates
  5. Question
    How Can a Bond Mutual Fund Report a Return of Over
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How Can a Bond Mutual Fund Report a Return of Over

Question 82

Question 82

Essay

How can a bond mutual fund report a return of over 13% when the coupon rate of the bonds they are holding are just 7% and interest rates are falling?

Correct Answer:

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The bond mutual fund is advertising its ...

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