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Author Question: A 13-year bond has an annual coupon rate of 8%. The coupon rate will remain fixed until the bond ... (Read 346 times)

Ethanolson3

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on: Aug 7, 2023
A 13-year bond has an annual coupon rate of 8%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 10%. Which statement regarding the bond’s price is true?

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If market interest rates increase, the price of the bond will also increase.


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The bond is currently selling at a price above its par value.


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If market interest rates remain unchanged, the bond’s price one year from now will be higher than it is today.


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The bond should currently be selling at its par value.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Ethanolson3 on Aug 7, 2023

Khareemom14

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Ethanolson3

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

jackie

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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