Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of $120 annually. Bond A will mature in five years, while bond B will mature in six years. If the yields to maturity on the two bonds change from 12% to 10%, Multiple Choice both bonds will decrease in value, but bond A will decrease more than bond B. both bonds will increase in value, but bond B will increase more than bond A. None of the options are correct. both bonds will increase in value, but bond A will increase more than bond B. both bonds will decrease in value, but bond B will decrease more than bond A.
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Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pay...
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Mathematics, 30.03.2021 04:50
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