What is true regarding the value of a 5%-coupon bond with a FV of $1,000 if market
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Question:
What is true regarding the value of a 5%-coupon bond with a FV of $1,000 if market rates decrease from 10% to 8%?
A. Coupon rate is higher than the market risk
B. Bond will sell at par
C. Bond will sell at larger discount
D. Bond will sell at a smaller discount
E. Bond is close to its maturity
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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