Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. If the price of this bond increases to $5,000, the interest rate will Multiple Cholce rise to 50 percent. fall to 4 percent. fall to 5 percent. rise to 12 percent. fall to 2 percent.
Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. If the price of this bond increases to $5,000, the interest rate will Multiple Cholce rise to 50 percent. fall to 4 percent. fall to 5 percent. rise to 12 percent. fall to 2 percent.
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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Transcribed Image Text:Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. If the price of this bond increases to $5,000, the
interest rate will
Multiple Cholce
rise to 50 percent.
fall to 4 percent.
fall to 5 percent.
rise to 12 percent.
fall to 2 percent.
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