A pension fund manager has invested assets in a 30-year bond paying a coupon of 5% p.a. An upward shift in the yield curve will cause Select one: a rise in market value of the assets O a decline in the market value of the assets Ono change in the market value of the assets O none of these

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
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A pension fund manager has invested assets in a 30-year bond paying a coupon of 5% p.a. An upward shift
in the yield curve will cause
Select one:
a rise in market value of the assets
O a decline in the market value of the assets
Ono change in the market value of the assets
O none of these
Transcribed Image Text:A pension fund manager has invested assets in a 30-year bond paying a coupon of 5% p.a. An upward shift in the yield curve will cause Select one: a rise in market value of the assets O a decline in the market value of the assets Ono change in the market value of the assets O none of these
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