The Conversion Factor for a Bond Is Approximately

question 6

Multiple Choice

The conversion factor for a bond is approximately

• A) The price it would have if all cash flows were discounted at 6% per annum
• B) The price it would have if it paid coupons at 6% per annum
• C) The price it would have if all cash flows were discounted at 8% per annum
• D) The price it would have if it paid coupons at 8% per annum

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