Question: In general, when dealing with the bond market, do bondholders tare better when the yield to maturity increases or when it decreases? More specifically, bondholders
In general, when dealing with the bond market, do bondholders tare better when the yield to maturity increases or when it decreases? More specifically, bondholders fare worse when the yield to maturtify- A. decreases, since this represents an increase in the price of the bond and a decrease in potential capital losses. B. increases, since this represents a decrease in the bond maturity and a decrease in potential capital losses. C. decreases, since this represents an increase in the coupon payment and an increase in potential capital gains. D. increases, since this represents a decrease in the price of the bond and an increase in potential capital losses
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