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 $2,500, the interest rate will Multiple Choice rise to 25 percent. fall to 5 percent. fall to 2.5 percent. rise to 14 percent. fall to 4 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 $2,500, the interest rate will Multiple Choice rise to 25 percent. fall to 5 percent. fall to 2.5 percent. rise to 14 percent. fall to 4 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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Answer the question based on the following information for a bond having no expiration date:
Multiple Choice
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rise to 25 percent.
-
fall to 5 percent.
-
fall to 2.5 percent.
-
rise to 14 percent.
-
fall to 4 percent.
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