When the required return is constant and equal to the coupon rate, the price of a bond as it approaches its maturity date will ________
A) remain at par
B) increase
C) decrease
D) change depending on whether it is a discount or premium bond
A
You might also like to view...
According to the book, what is the biggest mistake on resumes?
a. writing more than a page b. using pronouns c. leaving out how well the writer did things d. none of the above
Which statement regarding assignment is accurate?
a. Gratuitous assignments are generally revocable regardless of whether they are oral or written. b. An assignment for consideration is irrevocable. c. An assignment becomes valid when the obligor receives notice of the assignment. d. An assignment must be written and follow all legal formalities.
If, after making an environmental assessment, a federal agency decides no EIS is required, it must make this decision available to the public
a. True b. False Indicate whether the statement is true or false
Discounted cash flow methods typically ________
A) use simple interest calculations B) assume that cash flows will be reinvested when received C) focus on the payback period D) comply with the requirements of GAAP