Consider a 3-Year Bond with a Par Value of $1,000

question 57

Multiple Choice

Consider a 3-year bond with a par value of $1,000 and an 8% annual coupon.If interest rates change from 8 to 6% the bond's price will:

• A) increase by $51.54.
• B) decrease by $51.54.
• C) increase by $53.46.
• D) decrease by $53.46.

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Definitions:

Industriousness

A trait characterized by a persistent and hardworking approach to tasks and goals, often leading to success in endeavors.

High Aspirations

The desire to achieve great success or high standards.

Emotional Maturity

The ability to understand, control, and express one's emotions in a healthy and constructive way.

First Task

The initial duty or activity that is to be undertaken or accomplished.