The market price of a bond increases when the: a) coupon rate decreases. b) par value decreases.

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The market price of a bond increases when the:

a) coupon rate decreases.

b) par value decreases.

c) coupon is paid annually rather than semiannually.

d) face value decreases.

e) discount rate decreases.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Dec 31, 2018 10:57 AM

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The market price of a bond increases when the: a) coupon rate decreases. b) par value decreases.

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e discount rate decreases Explanation the lower t... View the full answer

Fundamentals of Corporate Finance

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