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Author Question: Bond X has a 13% annual coupon, Bond Y has a 9% annual coupon, and Bond Z has a 6% annual coupon. ... (Read 205 times)

rissygurl1124

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Bond X has a 13% annual coupon, Bond Y has a 9% annual coupon, and Bond Z has a 6% annual coupon. Each of the bonds has a maturity of 10 years and a yield to maturity of 9%. Which statement regarding bonds is true?

If the bonds’ market interest rate remains at 9%, Bond Z’s price will be lower 2 years from now than it is today.


If market interest rates remain at 9%, Bond X’s price will be 9% higher 1 year from today.


If market interest rates increase, Bond X’s price will decrease, Bond Z’s price will increase, and Bond Y’s price will remain the same.


If market interest rates decline, the prices of all three bonds will increase, but Bond Z’s price will have the largest percentage increase.



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Marked as best answer by rissygurl1124 on Aug 7, 2023

gyvette

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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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rissygurl1124

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


brbarasa

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Reply 3 on: Yesterday
Excellent

 

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