Question: Generally speaking, there is an inverse relationship between a bond price and interest rate. Likewise, if you know both the coupon rate and interest rate,

Generally speaking, there is an inverse relationship between a bond price

Generally speaking, there is an inverse relationship between a bond price and interest rate. Likewise, if you know both the coupon rate and interest rate, you can tell if a bond is selling at Par, Premium, or Discount. As such, for a bond with a coupon rate of 4; if market rate is 2%, the bond will be selling at If market rate jumps to 6%, the bond will be selling at a) Par; Premium b) Premium; Discount c) Discount Premium d) Market; Discount QUESTION 21 What is the average share cost for the dollar-cost averaging strategy shown below? Regular Investment Share Price $400 $30 $400 $40 $400 $35 $400 $37 $400 $40 O a) $37.40 Ob) $35.99 O c) $42.07

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