Question: What effect, if any, will decrease in interest rates have on bond values? O a. Bond values will increase O b. Bond values will decrease
What effect, if any, will decrease in interest rates have on bond values? O a. Bond values will increase O b. Bond values will decrease O c. Bond values may increase or decrease, depending on the maturity, quality and coupon rate O d. None of the above Assuming interest rates are expected to fall, which of the following will most likely maximize price increase? O a Commercial paper O b. U.S. Treasury bills Oc 30 year Corporate bonds O d. There is not enough information to tell Yield to maturity takes into account everything except: O a. Annual interest received O b. The difference between the current bond price and its maturity value O c The number of years to maturity Od. The number of years since the bonds purchase A 15 year, 7% coupon rate bond is selling for $771.82. What is the current yield of the bond? O a 22.8% Ob. 7.0% Oc9.1% Od 10.0% O e. 30.7%
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