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Author Question: When the required return is constant and equal to the coupon rate, the price of a bond as it ... (Read 54 times)

danielfitts88

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on: Jul 10, 2018
When the required return is constant and equal to the coupon rate, the price of a bond as it approaches its maturity date will ________.
 
  A) remain at par
  B) increase
  C) decrease
  D) change depending on whether it is a discount or premium bond

Question 2

Interest rate risk and the time to maturity have a relationship that is best characterized as ________.
 
  A) constant
  B) varying
  C) direct
  D) inverse


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ms_sulzle

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

C


danielfitts88

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  • Posts: 535
Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

hollysheppard095

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  • Posts: 339
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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