If interest rates did not change from now until this bond's maturity,a bond with a yield...

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If interest rates did not change from now until this bond's maturity,a bond with a yield...

If interest rates did not change from now until this bond's maturity,a bond with a yield of 7% and a coupon rate of 8% would:

Group of answer choices:

A) it would not be trading at all since the coupon does not equal the yield in the market.

B) trade at a discount right now. Its price would gradually increase until it reaches par at maturity.

C) trade at par.

D) trade at a premium right now. Its price would gradually decline until it reaches par at maturity.

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Answer 1

Answer #1

There is inverse relation in YTM and Price of bond if YTM increase or decrese price of bond also increse and decrease in inve

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Answer 2

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If interest rates did not change from now until this bond's maturity,a bond with a yield...