Question: As the spread between a bond's coupon and yield decreases, the price of the bond... A. falls B. approaches par C. gets closer to zero

As the spread between a bond's coupon and yield decreases, the price of the bond...

  • A. falls
  • B. approaches par
  • C. gets closer to zero
  • D. rises

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!