Bond values will change when interest rates change

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Reference no: EM131314703

1. If the coupon rate on an outstanding bond is lower than the relevant current interest rate, then the yield to maturity will be:

a. higher than the coupon rate.

b. lower than current interest rates.

c. equal to the coupon rate.

d. lower than the coupon rate.

2. Which one of the following bond values will change when interest rates change?

a.The coupon payment

b.The expected cash flows

c.The present value

d.The maturity value

Reference no: EM131314703

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