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Author Question: Which statement regarding bonds is true? (Read 27 times)

isam

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on: Aug 7, 2023
Which statement regarding bonds is true?

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If a 20-year, $1,000 par, 9% coupon bond was issued at par, and if interest rates then dropped to the point where rd= YTM = 6%, we could be sure that the bond would sell at a discount below its $1,000 par value.


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If a 20-year, $1,000 par, zero coupon bond was issued at a price that gave investors a 9% yield to maturity, and if interest rates then dropped to the point where rd = YTM = 6%, the bond would sell at a premium above its $1,000 par value.


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Other things held constant, a callable bond would have a higher required rate of return than a noncallable bond.


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People often call a downward-sloping yield curve a normal yield curve and a yield curve that slopes upward an inverted, or abnormal, yield curve.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by isam on Aug 7, 2023

jojo120419

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Reply #1 on: Aug 7, 2023
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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isam

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

rachel

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Reply 3 on: Yesterday
Wow, this really help

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