suppose that interest rate decrease in the economy we would expect yield to maturity prices to...
suppose that interest rate decrease in the economy we would expect yield to maturity prices to
a. Decrease
b increase
c stay the same
Homework Answers
Interest rate and yield to maturity prices of a bond are inversely related to each other. When interest rate decreases in the economy, then the yield to maturity prices will
b. increase
If the interest rate increases in the economy, then the yield to maturity prices will decrease.
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suppose that interest rate decrease in the economy we would
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instead of multiple choice by mistake. You are supposed to choose
only one of the following options.)
i. Duration of a coupon bonds have been increased.
ii. % Change in duration for high coupon bonds are higher for
high coupon bonds than small coupon bonds (both have the...
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