Multiple Choice
A company has two outstanding bonds with the same features,apart from their coupon.Bond A has a coupon of 5%,while bond B has a coupon of 8%.If the market interest rate changes by 10%:
A) bond A will have the greater change in price.
B) bond B will have the greater change in price.
C) the price of the bonds will not alter.
D) the price of the bonds will change by the same amount.
Correct Answer:

Verified
Correct Answer:
Verified
Q30: When market interest rates increase after a
Q31: When the coupon rate of a bond
Q32: When a loan agreement contains actions for
Q33: A debenture is a/an:<br>A) unsecured bond that
Q34: Many years ago,banks:<br>A) could make mortgage loans
Q36: Compared with unsecured notes,a debenture can offer:<br>A)
Q37: If a company wished to structure its
Q38: In relation to an issue of bonds,the
Q39: A positive loan covenant can state that
Q40: The _ value of a bond is