By How Much Will a Bond Increase in Price Over

question 100

Multiple Choice

By how much will a bond increase in price over the next year if it currently sells for $925,has 5 years until maturity,and an annual coupon rate of 7%?

• A) $8.26
• B) $8.92
• C) $12.55
• D) $15.00

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Definitions:

Pretest

An initial examination or evaluation conducted before a major treatment or intervention to establish a baseline or control variables.

Post-test

An evaluation or assessment conducted after a training, course, or specific period of time to determine what participants have learned or how conditions have changed.

Correlations

Statistical measures that describe the extent to which two or more variables fluctuate together.

Direction

The course or path along which something moves, progresses, or points.