Jump to content

Bonds Pt. 1


20mg

Recommended Posts

Suppose you buy a 10% coupon, 30-year bond today when it's first issued. If interest rates suddenly drop to 5%, what happens to the price of your bond?

The price will rise.
The price will fall.
The price will not change.
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.