When interest rates ______, the prices of currently outstanding par bonds ——— A. Rise; fall, because trading at discount B. Rise; rise, because trading at premium C. Fall; rise because trading at discount D. Fall; remain unchanged E. Fall; fall because trading at premium
When interest rates ______, the prices of currently outstanding par bonds ——— A. Rise; fall, because trading at discount B. Rise; rise, because trading at premium C. Fall; rise because trading at discount D. Fall; remain unchanged E. Fall; fall because trading at premium
Chapter4: Time Value Of Money
Section4.6: Perpetuities
Problem 2ST
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When interest rates ______, the prices of currently outstanding par bonds ———
A. Rise; fall, because trading at discount
B. Rise; rise, because trading at premium
C. Fall; rise because trading at discount
D. Fall; remain unchanged
E. Fall; fall because trading at premium
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