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fabz06 fabz06
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8 months ago
Bond X has a 13% annual coupon, Bond Y has a 9% annual coupon, and Bond Z has a 6% annual coupon. Each of the bonds has a maturity of 10 years and a yield to maturity of 9%. Which statement regarding bonds is true?


▸

If the bonds’ market interest rate remains at 9%, Bond Z’s price will be lower 2 years from now than it is today.



▸

If market interest rates remain at 9%, Bond X’s price will be 9% higher 1 year from today.



▸

If market interest rates increase, Bond X’s price will decrease, Bond Z’s price will increase, and Bond Y’s price will remain the same.



▸

If market interest rates decline, the prices of all three bonds will increase, but Bond Z’s price will have the largest percentage increase.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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elisebarnettelisebarnett
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fabz06 Author
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8 months ago
Thank you, thank you, thank you!
GeorgeNeist
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Yesterday
this is exactly what I needed
kobbhy
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2 hours ago
Brilliant ツ
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