What Happens to the Coupon Rate of a Bond That

question 42

Multiple Choice

What happens to the coupon rate of a bond that pays $80 annually in interest if interest rates change from 9 percent to 10 percent?

• A)The coupon rate increases to 10 percent
• B)The coupon rate remains at 9 percent
• C)The coupon rate remains at 8 percent
• D)The coupon rate decreases to 8 percent

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Definitions:

Codons

Sequences of three nucleotides in mRNA that specify a particular amino acid or a start/stop signal during protein synthesis.

Eukaryotic Cells

Complex cells with a nucleus and other organelles enclosed within membranes.

Cytoplasm

Region of a cell between the nucleus, or the nucleoid region of a bacterium, and the plasma membrane; contains the organelles of the cell.

Translation

The process by which the genetic code carried by mRNA is decoded to produce the specific sequence of amino acids in a polypeptide chain.