What could be the reason for a bond price to have declined from time you purchased it?
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Question:
What could be the reason for a bond price to have declined from time you purchased it?
A. For an inverse floater, generally the price should decrease with an increase in reference rate.
- B. There is a fall in the required yield owing to a change in the yield on comparable bonds (i.e., a change in the yield required by the market).
- C. There is a change in the price of the bond selling at a discount, without any change in the required yield, simply because the bond is moving toward maturity.
- D. There is a fall in required yield resulting from an improvement in the credit quality of the issuer.
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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