Question: KNOWLEDGE CHECK If the yield on a fixed-coupon bond goes up, does the borrower have to pay more interest? Yes, the price goes up. The
KNOWLEDGE CHECK If the yield on a fixed-coupon bond goes up, does the borrower have to pay more interest? Yes, the price goes up. The yield goes down No, the price goes up. The yield goes up. No, the price goes down. The payments are fixed. Yes, the price goes down. The coupon payments go up
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