If a Bond Has a Fixed Coupon Interest Rate,the Only

question 120

Multiple Choice

If a bond has a fixed coupon interest rate,the only way for the bond to increase its return to investors is to

• A)drop in value and sell for less.
• B)increase in value and sell for more.
• C)change its coupon interest rate.
• D)All of the above are correct.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards for financial reporting that is accepted globally.

Statement of Changes

A financial document that outlines the reasons for changes in equity, including transactions with owners and comprehensive income, over a period.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, reflecting ownership value.