James has purchased a 10-year bond that pays a $50 coupon. If interest rates go up, __________. the bond price will go up the bond price will go down the bond coupon will go up the bond coupon will go down

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14-05-2015
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James has purchased a 10-year bond that pays a $50 coupon. If interest rates go up, __________. the bond price will go up the bond price will go down the bond coupon will go up the bond coupon will go down

Sagot :

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HistoryGuy HistoryGuy · Answer 1 · 2015-05-16T15:14:01-04:00

HistoryGuy HistoryGuy

16-05-2015

If James has purchased a 10-year bond that pays a $50 coupon, and if interest rates go up, the bond price will rise, because the interest he is owed by the government will increase.

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