Question: CAN SOMEONE PLEASE ANSWER THESE STEP BY STEP! Problem 22: An increase in the risk-free interest rate will likely lead to: A) An increase in

CAN SOMEONE PLEASE ANSWER THESE STEP BY STEP! Problem 22: An

CAN SOMEONE PLEASE ANSWER THESE STEP BY STEP!

Problem 22: An increase in the risk-free interest rate will likely lead to: A) An increase in price of bonds that are currently priced below their par value and a decrease in price of bonds that are currently priced above their par value B) A decrease in price of bonds that are currently priced below their par value and an increase in price of bonds that are currently priced above their par value C) An increase in bond prices D) A decrease in bond prices E) No change in bond prices Problem 23: You would expect that a callable bond will be called if A) YTC>YTM B) YTC YTM C) YTC>coupon's rate D) YTM>coupon's rate E) The bond is convertible

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