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Find over same period if required return on bond not change

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Reference no: EM132653366

Problem 1: If the required return on a bond does not change from one year to the next, then ____________ over the same period. (Ignore changes in default risk.)

a. The price of a perpetual bond will rise.

b. The price of a premium bond will rise.

c. The price of a discount bond will fall.

d. The price of a bond selling at par will remain unchanged.

The price of a convertible bond will rise.

Reference no: EM132653366

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