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The market price of a bond increases when the: coupon rate decreases. par value decreases. coupon...

The market price of a bond increases when the:

coupon rate decreases.

par value decreases.

coupon is paid annually rather than semiannually.

face value decreases.

discount rate decreases.

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Answer #1

discount rate decreases, the lower the discounting rate for Bond , the higher the present value of Bond ( present value par value of Bond plus interest value ).

There is an inverse relationship between the disocunt rate and price of bond .

  

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