A security will pay a lump sum of $1000 in 8 years. There are no other...

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A security will pay a lump sum of $1000 in 8 years. There are no other...

A security will pay a lump sum of $1000 in 8 years. There are no other payments. Which of the following is true?

		If demand for this security increases then the yield should increase
		If demand for this security increases then the risk has probably also increased
		If demand for this security increases then the payment amount should increase
		If demand for this security increases then the price should increase

business finance

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Answer 1

Answer #1

Correct answer is option : If demand for this security increases then the price should increase

If demand increases for the securities price will also increase. yield will decline and risk will be lower. Payment will not increase as it will remain the same as earlier.

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Answer 2

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