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Author Question: If a bond's coupon adjusts to pay a constant real rate of return, then an increase in inflation ... (Read 45 times)

jwb375

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on: Jul 1, 2018
If a bond's coupon adjusts to pay a constant real rate of return, then an increase in inflation would cause
 
  A) the nominal coupon payment to rise.
  B) the nominal coupon payment to fall.
  C) the nominal coupon payment to remain unchanged.
  D) the bond's price to fluctuate wildly.

Question 2

A bond issuer agrees to pay a stated nominal amount each year. An increase in the nominal interest rate will cause
 
  A) the price of the bond to fall.
  B) the price of the bond to rise.
  C) the nominal value of the bond's coupon to rise.
  D) the nominal value of the bond's coupon to fall.
Microeconomics ¦ Perloff ¦ 8th Edition
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robbielu01

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Reply #1 on: Jul 1, 2018
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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jwb375

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

tranoy

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

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