11. One of the above is the most accurate statement? a. If the yield to maturity of a bond rises, the price of the bond will decrease. b. If a bond's value to maturity rises, the current yield falls, all other things being equivalent. c. A bond can sell at a premium above par if its yield to maturity reaches its coupon rate. d. Any of the above claims is true. e. None of the above claims are true.
11. One of the above is the most accurate statement? a. If the yield to maturity of a bond rises, the price of the bond will decrease. b. If a bond's value to maturity rises, the current yield falls, all other things being equivalent. c. A bond can sell at a premium above par if its yield to maturity reaches its coupon rate. d. Any of the above claims is true. e. None of the above claims are true.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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11. One of the above is the most accurate statement?
a. If the yield to maturity of a bond rises, the price of the bond will decrease.
b. If a bond's value to maturity rises, the current yield falls, all other things being equivalent.
c. A bond can sell at a premium above par if its yield to maturity reaches its coupon rate.
d. Any of the above claims is true.
e. None of the above claims are true.
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