Corporate bonds usually pay interest semiannually. If a company decided to change from semiannual to annual interest

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Corporate bonds usually pay interest semiannually. If a company decided to change from semiannual to annual interest payments, how would this affect the bond’s interest rate risk?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 04:46 AM

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Corporate bonds usually pay interest semiannually. If a company decided to change from semiannual to annual interest

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The interest rate risk would increase as the bonds are ...View the full answer

Financial Institutions Management A Risk Management Approach

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