Question: An unexpected decrease in market interest rate will cause a A. Coupon bonds current yield to increase B. Zero coupon bonds price to decrease C.

An unexpected decrease in market interest rate will cause a

A. Coupon bond’s current yield to increase

B. Zero coupon bond’s price to decrease

C. Fixed-rate bond’s coupon rate to decrease

D. Zero coupon bond’s current yield to decrease

E. Coupon bond’s yield to maturity to decrease

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ANSWER B Zero coupon bonds price to decrease A zerocoupon bond is a bond that pays no interest and t... View full answer

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