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Author Question: If the required rate of return on a bond (rd) is less than its coupon interest rate and will remain ... (Read 42 times)

ddddddddddeeee4444

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on: Aug 7, 2023

Question 1

For bonds with the same coupons, they have differential sensitivity to changes in interest. That is, the shorter the maturity of the bond, the more its price changes in response to a given change in interest rates.

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Question 2

If the required rate of return on a bond (rd) is less than its coupon interest rate and will remain below that rate, then the market value of the bond will always be above its par value until the bond matures, at which time its market value will equal its par value. (Accrued interest between interest payment dates should not be considered when answering this question.)

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◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by ddddddddddeeee4444 on Aug 7, 2023

risolinick@gmail.com

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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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ddddddddddeeee4444

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

Bigfoot1984

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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