Which of the following observations regarding the valuation of bonds is correct?
A. For a given change in the required return, the shorter its maturity, the greater the change in the market value of the bond.
B. When the market rate of return is less than the stated coupon rate, the market value of the bond will be more than its face value, and the bond will be selling at a premium.
C. When interest rates rise so that the required rate of return increases, the market value of the bond will increase.
D. The market value of a discount bond is greater than its face value during a period of rising interest rates
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following observations regarding the valuation of bonds is correct? A. For a given change in the required return, the shorter ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The following items are taken from the financial statements of the Freight Service for the year ending December 31, 2016: Accounts payable $ 19,000 Accounts receivable 13,000 Accumulated depreciation - equipment 26,000 Advertising expense 21,200
Answers (1)
Sautéed, a restaurant in california, specializes in sautéed food. the restaurant holds a highly popular bash, featuring well-known djs, on the last saturday night of every month.
Answers (1)
How do you plan out a day where you have a lot of things you need to get done?
Answers (2)
You go to a flea market and buy a used color TV set for $100. One day you receive a notice that the owner of the TV, which had been stolen from her house and sold by the thief at the flea market, wants the set back.
Answers (1)
Suppose you hire an employee to operate a machine that only your company can use. Identify the type of specialized investment that this situation requires.
Answers (1)
New Questions in Business
A car dealer wants to get rid of the stock of last year's model. Assume that the dealer knows from past experience that the price elasticity of demand for cars is unitary ( = 1).
Answers (2)
Suppose Waterman Cable Company lent $125,000 to Comcast. On December 31, 2015, Comcast paid back the $125,000 and also paid $3,000 interest to Waterman Cable Company. Under U. S.
Answers (1)
A private, not-for-profit hospital received a donation of medicine from the Xengen Pharmaceutical Company on February 13, 20X2. The cost of the medicine to the company was $34,000, and its market value was $76,000.
Answers (1)
What type of saving account is a Christmas Club account
Answers (1)
Swifty Corporation provides security services. Selected transactions for Swifty Corporation are presented below. Oct. 1Issued common stock in exchange for $77,900 cash from investors. 2Hired part-time security consultant.
Answers (1)