Solved

If a Company Has Issued a Fixed-Interest Bond to Investors

Question 23

Multiple Choice

If a company has issued a fixed-interest bond to investors and then later interest rates fall on comparable securities,the value of the existing fixed-interest bond:


A) will increase.
B) will decrease.
C) will be unaffected.
D) depends only on the credit risk of the issuer.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: Which of the following is a technique

Q19: If a bank has a duration gap

Q20: If interest rates are forecast to rise

Q21: If a rise in interest rates causes

Q22: If the current yields on three-year corporate

Q24: Over the lifetime of a bond,the coupons

Q25: Refer to the following table:<br>Premier National

Q26: For a given bond,the curvature of the

Q27: With a four-year bond of face value

Q28: When a financial institution matches its interest