What is true regarding the value of a 5%-coupon bond with a FV of $1,000 if market

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What is true regarding the value of a 5%-coupon bond with a FV of $1,000 if market rates decrease from 10% to 8%?

A. Coupon rate is higher than the market risk

B. Bond will sell at par

C. Bond will sell at larger discount

D. Bond will sell at a smaller discount

E. Bond is close to its maturity

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1285190907

8th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Feb 07, 2024 04:06 AM

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What is true regarding the value of a 5%-coupon bond with a FV of $1,000 if market

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When market rates decrease the value of existing bonds typically ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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