My Course $-$ PRINCIPLES OF

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e: Saving and Investment

Score: $391/600$

Question Value: $25$

Which statement is TRUE?

When interest rates rise, bond prices rise.

The rate of return on a zero$-$coupon bond currently selling for $$850$ that will pay $$900$ one year from now is $5\mathrm{.}5\%.$

An initial public offering $($IPO$)$ is the first time a corporation sells bonds to the public to raise capital.

One of the advantages of bond financing is that bond issuers can raise large sums of money and then pay bond holders back over a long time.

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