Question: If the yield on a fixed - coupon bond goes up , does the borrower have to pay more interest? OYes, the price goes down.
If the yield on a fixedcoupon bond goes up does the borrower have to pay more interest?
OYes, the price goes down. The coupon payments go up
Oo the price goes down. The payments are fixed
O No the prige goes up The yield ogoes up
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
