Question Mode Multiple Choice Question   Identify the correct reason for the fluctuation in a bond's value over time. Multiple choice question. The coupon rate is fixed, but the par value changes over time. The maturity date is fixed, but the coupon rate changes over time. The coupon rate varies, while the market interest rate is fixed. The coupon rate and the maturity date are fixed, while the market interest rate changes. Need help? Review these concept resources.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 3Q: The rate of return on a bond held to its maturity date is called the bonds yield to maturity. If...
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Identify the correct reason for the fluctuation in a bond's value over time.

Multiple choice question.

The coupon rate is fixed, but the par value changes over time.

The maturity date is fixed, but the coupon rate changes over time.

The coupon rate varies, while the market interest rate is fixed.

The coupon rate and the maturity date are fixed, while the market interest rate changes.

Need help? Review these concept resources.

 

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