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Author Question: Which of the following statements best describes interest rates? (Read 57 times)

heatherbabydoll1

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on: Aug 7, 2023
Which of the following statements best describes interest rates?

◦

You hold two bonds. One is a 15-year, zero coupon issue, and the other is a 15-year bond that pays a 7% annual coupon. The same market rate, 7%, applies to both bonds. If the market rate rises from the current level, the zero coupon bond will experience the smaller percentage decline.


◦

You hold two bonds. One is a 15-year, zero coupon issue, and the other is a 15-year bond that pays a 7% annual coupon. The same market rate, 7%, applies to both bonds. If the market rate rises from the current level, the zero coupon bond will experience the same percentage decline.


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An increase in interest rates will cause the prices of outstanding bonds to rise, whereas a decrease in rates will cause bond prices to fall.


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An increase in interest rates will cause the prices of outstanding bonds to fall, whereas a decrease in rates will cause bond prices to rise.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by heatherbabydoll1 on Aug 7, 2023

gyvette

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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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heatherbabydoll1

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Reply 2 on: Aug 7, 2023
Excellent

ryhom

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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