Question: For a standard semi-annual coupon bond, when interest rates decrease, which of the following is true: The present value of the bond s remaining cash
For a standard semi-annual coupon bond, when interest rates decrease, which of the following is true:
| The present value of the bond s remaining cash flows declines. |
| The price of the bond increases. |
| The bond is called a discount bond. |
| The coupon amount increases. |
| None of these. |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
