The value of a bond is inversely related to changes in the ...

[Anajune7]

The value of a bond is inversely related to changes in the investor's present required rate of return.
 
  Indicate whether the statement is true or false

Question 2

With a 10 discount rate, the present value factor of 1 received 10 years from now is 0.386. The present value of a 1 annuity factor for 10 years is 6.145.
 
  Given these values, the present value of a 1,000 (par), 10-year corporate bond with a 12 coupon rate is
  A)
 
  6,191.32.
  B)
 
  1,586.00.
  C)
 
  1,123.40.
  D)
 
  1,000.50

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Answer to Question 1

TRUE

Answer to Question 2

C

[Anajune7]

TY

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