K The yield to maturity on a 10-year Treasury note (with face value $100 and annual coupon rate = 2.625 %) is 3.37%. If the price of this Treasury note goes up, its: I. coupon rate drops below 2.625%. II. coupon rate rises above 2.625%. III. yield to maturity drops below 3.37%. IV. yield to maturity rises above 3.37%. OA. III. OOC B. IV. C. I and III. OD. II and IV. O E. 1.
K The yield to maturity on a 10-year Treasury note (with face value $100 and annual coupon rate = 2.625 %) is 3.37%. If the price of this Treasury note goes up, its: I. coupon rate drops below 2.625%. II. coupon rate rises above 2.625%. III. yield to maturity drops below 3.37%. IV. yield to maturity rises above 3.37%. OA. III. OOC B. IV. C. I and III. OD. II and IV. O E. 1.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 10P
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Transcribed Image Text:K
The yield to maturity on a 10-year Treasury note (with face value $100 and annual coupon rate = 2.625 %) is 3.37%. If the price of this Treasury note goes up, its:
I. coupon rate drops below 2.625%.
II. coupon rate rises above 2.625%.
III. yield to maturity drops below 3.37%.
IV. yield to maturity rises above 3.37%.
OA. III.
OOC
B. IV.
C. I and III.
OD. II and IV.
O E. 1.
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