Question: A $ 1 , 0 0 0 face, 1 0 - year, 8 . 0 0 % semi - annual coupon, option - free bond
A $ face, year, semiannual coupon, optionfree bond is issued at par market rates are thus Given that the bond price decreased when market rates increased basis points bp if market yields decrease by bp the bond's price will:
increase by
decrease by more than
Decrease by
increase by more than
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