A $5000 par value bond pays annual payments of $100. If the bond changed so that now it pays $200 each year instead of $100 each year, this would the bond's yield. the bond's price and raise; lower lower; lower raise; raise lower; raise

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Question 6
Again, please consider this scenario:
A $5000 par value bond pays annual payments of $100.
If the bond changed so that now it pays $200 each year instead of $100 each year, this would
the bond's yield.
the bond's price and
raise; lower
O lower; lower
O raise; raise
lower; raise
Transcribed Image Text:Question 6 Again, please consider this scenario: A $5000 par value bond pays annual payments of $100. If the bond changed so that now it pays $200 each year instead of $100 each year, this would the bond's yield. the bond's price and raise; lower O lower; lower O raise; raise lower; raise
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