Question: please help me with all these please please As interest rates in the overall market increase, the prices of existing bonds (already trading in the

please help me with all these please please

As interest rates in the overall market increase, the prices of existing bonds (already trading in the market) with fixed coupon rates will:

decrease

stay the same

increase.

bond prices are unrelated to market interest rates

The required rate of return of a bond is, in theory, made up of:

The nominal risk free rate plus the default risk premium, maturity risk premium and liquidity risk premium

The real risk free rate plus the default risk premium and maturity risk premium

The real risk free rate plus the default risk premium, maturity risk premium and liquidity risk premium

The nominal risk free rate plus the default risk premium

A junk bond is___________________.

a low yield bond relative to A rated corporate bonds.

a bond which is rated BBB or lower by rating agencies

an unrated bond

a bond that will earn a higher spread relative to a Treasury than a AAA rated bond will yield.

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