This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When the required return is constant and equal to the coupon rate, the price of a bond as it ... (Read 46 times)

danielfitts88

  • Hero Member
  • *****
  • Posts: 535
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ms_sulzle

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

C


danielfitts88

  • Member
  • Posts: 535
Reply 2 on: Jul 10, 2018
:D TYSM

ashely1112

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Reaction at constant-pressure Reaction at constant-pressure
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Converting the universal gas constant Converting the universal gas constant
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
Twenty percent of the automobiles inspected at a state inspection station required repairs to ... Twenty percent of the automobiles inspected at a state inspection station required repairs to ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: EpiPen Animation (Part 2)

For a complete list of videos, visit our video library