Question: Do bondholders fare betterbetter when the yield to maturity LOADING... decreasesdecreases or when it increasesincreases ? Bondholders fare betterbetter when the yield to maturity A
Do bondholders fare betterbetter when the yield to maturity LOADING... decreasesdecreases or when it increasesincreases
Bondholders fare betterbetter when the yield to maturity
A
increasesincreases since this represents aa decreasedecrease in the bond maturity and aa decreasedecrease in potential capital gains.
B
decreasesdecreases since this represents anan increaseincrease in the coupon payment and aa decreasedecrease in potential capital gains.
C
decreasesdecreases since this represents anan increaseincrease in the price of the bond and anan increaseincrease in potential capital gains.
D
increasesincreases since this represents aa decreasedecrease in the price of the bond and anan increaseincrease in potential capital gains
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