The Interest Rate That Equates the Price of a Bond

question 69

Multiple Choice

The interest rate that equates the price of a bond with the present value of its payments:

• A) will vary directly with the value of the bond.
• B) should be the one that makes the value equal to the par value of the bond.
• C) will vary inversely with the value of the bond.
• D) should always be greater than the coupon rate.

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