Question: S 0 7 - 0 2 Interpreting Bond Yields [ LO 2 ] Suppose you buy a 7 percent coupon, 2 0 - year bond

S07-02 Interpreting Bond Yields [LO2]
Suppose you buy a 7 percent coupon, 20-year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond?
The price of the bond will fall.
The price of the bond will rise.
S 0 7 - 0 2 Interpreting Bond Yields [ LO 2 ]

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