A company releases its latest quarterly earnings report. The report details extremely negative developments for the...
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A company releases its latest quarterly earnings report. The report details extremely negative developments for the firm that will adversely impacts its cash flows in both the short-term and for many years to come. As a result, which of the following outcomes will most likely occur for the firm's outstanding bonds? a) The bond price will decrease, and the yield to maturity will increase. b) The bond price will increase, and the yield to maturity will decrease. c) The bond price will increase, and the yield to maturity will increase. d) The bond price will decrease, and the yield to maturity will decrease. A company releases its latest quarterly earnings report. The report details extremely negative developments for the firm that will adversely impacts its cash flows in both the short-term and for many years to come. As a result, which of the following outcomes will most likely occur for the firm's outstanding bonds? a) The bond price will decrease, and the yield to maturity will increase. b) The bond price will increase, and the yield to maturity will decrease. c) The bond price will increase, and the yield to maturity will increase. d) The bond price will decrease, and the yield to maturity will decrease.
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Answer b the bond price will increase and the yield to maturity will decrease While exp... View the full answer
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