Multiple Choice
When interest rates move from 9 to 10% per annum for a three-year bond paying a 9% per annum coupon,the:
A) coupon rate becomes higher than the current market yield
B) present value of the bond becomes higher than the face value
C) current yield becomes higher than the coupon rate
D) current price of the bond will increase
Correct Answer:
Verified
Correct Answer:
Verified
Q79: Refer to the following table:<br> <span
Q80: If interest rates are forecasted to rise,if
Q81: Two basic strategies for reducing the effects
Q82: If a fall in interest rates causes
Q83: When there is an upward sloping yield
Q85: All things being equal,the duration of a
Q86: Which of the following statements about the
Q87: Because of convexity of the price/yield curve
Q88: If a bank increases interest rates on
Q89: Which of the following duration analysis is