Question: Consider the following bond (called A): - Face Value: 1000 - Coupon: 7.5% - Annual interest payments - Maturity: 5 years If the market interest

Consider the following bond (called A): - Face Value: 1000 - Coupon: 7.5% - Annual interest payments - Maturity: 5 years If the market interest rate for 5 years goes down, the price of bond A will ______ and it is good for the ________.

MCQ:

Decline/ Issuer of bond A

Decline/ Holder of bond A

Rise/ Issuer of bond A

Rise/ Holder of bond A

Consider the following bond (called A): - Face Value: 1000 - Coupon:

Consider the following bond (called A): Face Value: 1000 Coupon: 7.5% Annual interest payments Maturity: 5 years If the market interest rate for 5 years goes down, the price of bond A will and it is good for the Decline/ Issuer of bond A Decline/ Holder of bond A Rise/ Issuer of bond A Rise/ Holder of bond A

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