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Author Question: As interest rates rise, bond prices A) rise. B) are unaffected; they may rise or fall. ... (Read 264 times)

abern

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As interest rates rise, bond prices
 
  A)
 
  rise.
  B)
 
  are unaffected; they may rise or fall.
  C)
 
  are readjusted by their issuers to maintain constant coupon rates.
  D)
 
  fall.

Question 2

Both Investor A and Investor B are considering the purchase of Corporation FJR bonds. The bonds
  are selling at a price of 1,100 each. Investor A decides to buy the bonds and Investor B does not
  buy the bonds.
 
  A) The yield to maturity for this bond must be higher than the coupon rate.
  B) The yield to maturity for Investor A must be higher than the yield to maturity for Investor B.
  C) The yield to maturity for Investor A must be less than the yield to maturity for Investor B.
  D) Investor A must have a required return lower than the required return for Investor B.


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flexer1n1

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abern

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Reply 2 on: Jul 10, 2018
Excellent


hollysheppard095

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  • Posts: 339
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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