Which of the follwing statement is correct. As the credit risk of a bond increases: The YTM falls and price of the bond falls The YTM increases and price of the bond falls The YTM falls and price of the bond rises The YTM increases and price of the bond rises
Which of the follwing statement is correct. As the credit risk of a bond increases: The YTM falls and price of the bond falls The YTM increases and price of the bond falls The YTM falls and price of the bond rises The YTM increases and price of the bond rises
Chapter4: Time Value Of Money
Section4.6: Perpetuities
Problem 2ST
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Which of the follwing statement is correct. As the credit risk of a bond increases:
The YTM falls and price of the bond falls
The YTM increases and price of the bond falls
The YTM falls and price of the bond rises
The YTM increases and price of the bond rises
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