15) All else held constant, the present value of a bond increases when the: A) yield to maturity decreases. B) current yield increases. C) time to maturity of a premium bond decreases. D) coupon rate decreases. E) time to maturity of a zero coupon bond increases.
15) All else held constant, the present value of a bond increases when the: A) yield to maturity decreases. B) current yield increases. C) time to maturity of a premium bond decreases. D) coupon rate decreases. E) time to maturity of a zero coupon bond increases.
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 9Q: In Chapter 7, we saw that if the market interest rate, rd, for a given bond increased, the price of...
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