When Interest Rates Rise,the Price of a Given Bond Issue

question 111

True/False

When interest rates rise,the price of a given bond issue will fall.

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Definitions:

IRR

Stands for Internal Rate of Return, which is a financial metric used to estimate the profitability of potential investments.

WACC

The Weighted Average Cost of Capital is a method of determining a corporation's cost of capital, with each capital category being weighted in accordance with its relative proportion.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.

Cash Flow

A measure of the amount of cash and cash-equivalents being transferred into and out of a business.